the value of a machine depreciates at the rate of 12% p.a. if its present value is 7000 rupees .what will be its value after 2 years.
Answers
Answer:
We know that
Final price = initial price(1+
100
rate
)
time
Here the final price = Rs. 8784, time =3 yrs, rate =−10%p.a.
The rate is negative since the price is depriciating.
Let the initial price = Rs. x.
∴x×(1−
100
10
)
3
=8748
⇒x×
10
9
×
10
9
×
10
9
=8748
⇒x=8748×
9
10
×
9
10
×
9
10
= Rs. 12000
So, the price of the machine 3 years back = Rs. 12000.
Ans- Option C.
Given info : the value of a machine depreciates at the rate of 12 % p.a. the present value of its price is 7000 Rs.
To find : the value of after 2 years is ...
solution : the value of the machine depreciates at the rate of 12 per annum.
after n years, the value of the machine will be, A = A₀(1 - r/100)ⁿ
here initial value of the machine = A₀ = 7000 Rs
the rate of depreciation = r = 12 % per annum
time = n = 2 years
⇒ A = 7000(1 - 12/100)² = 7000 × 23/25 × 23/25 = 5924.8 Rs.
therefore the value of the machine after 2 years is 5924.8 Rs.