Question

The value of a machine depreciates 5% every year, If the present value of the machine is 100000Rs . What will be it's value after 2 years?

Answer 1

Answer:

Firstly;

price depreciates 5% every year.

Present price = Rs.1,00,000.

First year = 5% of Rs.1,00,000

=5,000

First year price = Rs.1,00,000 - 5,000

= Rs.95,000.

Second year = 5% of Rs.95,000

= Rs.4,750

Second year price = 95,000 - 4,750

= Rs.90,250 .Answer.