Question

the value of a machine depreciates 5% every year if the present value of the machine is 100000 what will be its value after 2 year

Answer 1

1 st year
100000*5/100=5000 depreciation
2 nd year
95000*5/100=4750 depreciation

answer will be 95000-4750
=90250

Answer 2

$\huge{\underline{\underline{\sf{Solution:-}}}}$

The Present value of the machine = Rupees 100000

The decrease in its value after 1 year = 5% of rupees 100000

$= rupees (\frac {5}{100000} \times100000)$ = rupees 5000

The depreciated value after 1 year = rupees (100000 —5000)= rupees 95000

The decrease in its value after 2nd year = 5% of rupees 95000

$= rupees \: ( \frac{5}{100} \times 95000) \\ = rupees \: 4750$

The depreciated value after 2 years = rupees (95000 — 4750)= rupees 90250

Hence, the value of the machine after 2 years =

$\green{ Rupees \: 90250}$