Question

The machinery of a certain factory is valued at Rs.18400 at end of 1980. If it is supposed to depreciate each year at 8% of the value at the beginning of the year, calculate the value of the machine at the end of 1979 and 1981.

Answer 1

Formula for depreciation is v=vo(1-r/100)^n.

Answer 2

Answer:

The value of the machine at the end of 1979 is Rs.20000. and the value of the machine at the end of 1981 is Rs.16928

Step-by-step explanation:

Let x be the value of machinery in the end of 1979

We are given that it is supposed to depreciate each year at 8%

So, Value of machinery after 1 year i.e. in 1980 = $x-\frac{8}{100} \times x$

We are given that machinery of a certain factory is valued at Rs.18400 at end of 1980.

$x-\frac{8}{100} \times x=18400$

$\frac{92}{100} \times x=18400$

$x=18400 \times \frac{100}{92}$

$x=20000$

So, the value of the machine at the end of 1979 is Rs.20000.

Value of machine in 1980 = 18400

Value of machine after 1 year i.e. at th end of 1981 = $18400-\frac{8}{100} \times 18400 = 16928$

Hence the value of the machine at the end of 1979 is Rs.20000. and the value of the machine at the end of 1981 is Rs.16928