The value of a machine bought at Rs. 85,900 was depriciated by 7%. The value of the machine after a year is:
(a.)Rs.79,885
(b.)Rs.79,886
(c.)Rs.79,887
(d.)Rs.79,987
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current value of Machine =Rs.100,00
After 1 year
value decreased by 5%
value of Machine is
Rs.95% of 100,000
⇒
100
95
×100,000=Rs.95,000
After 2 years
again the value is decreased by 5% from previous year' s Value
Now value of Machine is
=95% of 95,000
=
100
95
×95,000
=0.95×95,000
=Rs.90,250 is the value of machine at the of two years
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