Question

the price of a machine is at present rupees 40000 and its scrap value after the some period is rs 24565 if the annual depreciation is 15%,find the time period​

Answer 1

Answer:

It is given that

Present value = 500000

Reduced value = 364500

Rate of depreciation = 10% p.a.

Consider n years as the period

We know that

A/P = (1−r/100)

n

Substituting the values

364500/500000=(1−10/100)

n

By further calculation

(9/10)

n

=729/1000=(9/10)

3

So we get

n=3

Therefore, the period in which its value be reduced to 364500 is 3 years.