the value of a machine deperciates each year by 10% of it's value at the beginning of that year . It's value when new is 750rs find the value when it's two year
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10/100×750 =. Do this that's your answer
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Given,
- The initial prize of the machine = Rs. 750
- Rate of depreciation = 10%
To find,
- The prize of the machine after 2 years.
Solution,
Since the value is being reduced every year, we use the compound interst formula.
(Note : We use ' - ' in order to find the amount depreciated.)
A = 750(1 - 10/100)²
= 750(90/100)²
= Rs. 607.5
Therefore, the cost of the machine after 2 years is Rs. 607.5
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