Question

The value of a machine depreciate uniformly at 10% every year. If present value of the machine is rs 1000, its value after 2 years will be

Answer 1

Answer:

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Answer 2

Concept:

Depriciation is a decrease in an asset's value over time, especially as a result of wear and tear.

Given:

Rate of depriciation= 10%

Present value= Rs. 1000

To find:

Value after 2 years

Solution:

Rate of decrement is 10%

For first year,

Depriciation = $1000(1- \frac{10}{100} )= 1000* \frac{90}{100} = 900$

Value will be 900

For second year,

Depriciation = $900(1- \frac{10}{100} )= 900* \frac{90}{100} = 810$

The value after two years will be ₹$810$.

 

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