Question

the value of a machine depreciates at the rate of 20percent p.a compound depreciation. find the total compound depreciation after 3yeras if the present value is 175000

Answer 1

Answer:

Rs. 85,400

Value of the vehicle after 3 years

=1,75,000×(1−

100

20

)

3

=1,75,000×

5

4

×

5

4

×

5

4

= Rs. 89, 600

∴ Total depreciation = 1, 75, 000 - 89, 600

=Rs.85,400

Step-by-step explanation:

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