Question

the value of a machine deppreciates (decrease) every year by 5% . If the present value of the machine is rupees 27500. What will be the value of the machine after 2 year?​

Answer 1

Given :-

Current price of a machine = Rs. 27,500

Percentage of decrease in it's price after every year = 5%

Then :-

5% of 27500 will be :-

$= \frac{5}{100} \times 27500$

$= \frac{(27500 \times 5)}{100}$

$= \frac{137500}{100}$

$\color{hotpink} = Rs. \: 1,375$

Which means that , the price of the machine decreases by Rs. 1375 every year .

Then :-

Money that will be decreased in 2 years :-

$= 1375 \times 2$

$\color{hotpink} =Rs. \: 2,750$

Which means the price of the machine will be decreased by Rs. 2,750 in 2 years .

Price of the machine after 2 years :-

$=27500 - 1375 \times 2$

$= 27500 - 2750$

$\bold\color{hotpink} = Rs. \: 24,750$

Therefore , the price of the machine after 2 years would be = Rs. 24,750 .