Question

The value of a machine depreciates 10% annually. If its present value is rupees 25000, what will be its value after one year

Answer 1

P = 25000

R = 10%

T = 1 year

● depreciates

$a \: = p \: \times \: \: 1 \: - {\frac{r}{100} }^{n}$

$= 25000 \: \times \: \: 1 \: - {\frac{10}{100} }^{1}$

$= 25000 \: \times \: {\frac{100 - 10}{100} }$

$= 25000 \: \times \: {\frac{90}{100} }$

= 22500