Question

the value of a machine depreciate every year by 10% . if the present value of the machine is 50000, find its value after 2 years

Answer 1

Sraight Line Method 1st year  50000-10% of 50000 50000-5000 45000 2nd year 45000-10% of 45000 45000-4500 40500 So after 2 year the price of machine is 40500

Answer 2

Answer:

Correct option is

C

Rs. 12000

We know that

Final price = initial price(1+

100

rate

)

time

Here the final price = Rs. 8784, time =3 yrs, rate =−10%p.a.

The rate is negative since the price is depriciating.

Let the initial price = Rs. x.

∴x×(1−

100

10

)

3

=8748

⇒x×

10

9

×

10

9

×

10

9

=8748

⇒x=8748×

9

10

×

9

10

×

9

10

= Rs. 12000

So, the price of the machine 3 years back = Rs. 12000.

Ans- Option C.