Question

the value of a machine depreciates every year by 10 percent .If it's present value is 90,000 ,what will be it's value after 2 years

Answer 1

Present value of machine = Rs 90,000

since , given that the value of machine depreciated at the rate of 10 % per year for 2 years.

First year , depreciation in the value of machine will be :
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= 10 % of 90,000

= 10 × 90,000 / 100 = Rs 9,000

value of machin till second year will be :
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= present value of machin - depreciation in the value of machin in first year .

= 90,000 - 9,000 = Rs 81 ,000

second year,depreciation in the value of machine will be :
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= 10 % of 81, 000

=10 × 81,000 /100 = Rs 8100

value of machin till third year will be
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= value of machine till second year - depreciation in the value of machine in second year

= Rs 81,000 - 8,100

= Rs 72,900

therefore , value of machine after two years= Rs 72,900
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Your Answer : 72,900
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