Question

the value of a machine depreciates 5% every year if the present value of the machine is 24000 what will be its value after 2 year

Answer 1

Answer:

21660

Step-by-step explanation:

initial value=24000

5% of decrease in first year=24000-24000x5/100=22800

Then,5% decrease in second year= 22800-22800x5/100=21660

Answer 2

Answer:

$21,660$

Step-by-step explanation:

Present value $x$ = $24000$

Annual Depreciation rate ${r}_{d}$ = $5\%$

Time period $n$ = $2$

Value after two years

= $x\left(1-\dfrac{{r}_{d}}{100}\right)^n$

= $24000\left(1-\dfrac{5}{100}\right)^2$

= $24000\left(1-\dfrac{1}{20}\right)^2$

= $24000\left(\dfrac{19}{20}\right)^2$

= $24000\left(\dfrac{361}{400}\right)$

= $21660$

Hence, the value of the machine after two years will be $21,660$