Question

The value of a machine depreciates 10% annually. Its present value is 64800. Find:
(i) its value after 2 years,
(ii) its value 2 years ago.
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Answer 1

Answer:i)52488

ii)80000

Step-by-step explanation:i) given value of machine (V) = 64800

r=10%, n= 2yrs                                                          

value of machine after n yrs = V(1-R/100)to the power n

value of machines after 2 yrs= 64800(1-10/100) TO THE POWER 2

                                                 = 64800 X 9/10 X 9/10

                                                  = 52,488

ii) value of machine n yrs ago = V(1-r /100) to the power -n

                                                 =64800(1-10/100) TO THE POWER -2    

                                                  =64800 x 10/9 x 10 /9

                                                  = 80000

                                           

                                             

Answer 2

Step-by-step explanation:

The answer is 1= 52488 and 2=80000