Question

the value of a machine depreciates at the rate of 10% per annum it was purchased 3 years ago for 60000.what is the present value of the machine​

Answer 1

Answer:

43740

Step-by-step explanation:

We have,

P = 60000, R = 10%, n = 3 years.

Here, the value of machine depreciates.

So,

A = P(1 - r/100)ⁿ

   = 60000(1 - 10/100)³

   = 60000(90/100)³

   = 60000(9/10)³

   = 60000(729/1000)

   = 43740

Therefore, Present value of the machine = 43740.

Hope it helps!

Answer 2

Value of the machine after 2 years = Rs.[40500*(1- 10/100)^2]

= Rs.40500*9*9/10*10 = Rs. 32805

Value of the machine 2 years ago = Rs.40500/(1-1/100)^2

= Rs.40500*10*10/9*9 = Rs.50000

32805, 50000