Question

The value of a machine depreciates by 5% every year. If the present value of the machine be Rs.95000,what was its value last year?

Answer 1

LAST YEAR its value would be 95475

Answer 2

Let P be last year's value of machine ,A be the present year's value of machine,r be rate and n be time. .therefore A=P(1-r/100)^n .95000=P(1-5/100)^1. .95000=P*95/100. .95000*100/95=P. .1000*100=P. .P=100000