Question

the value of a machine depreciates every year by 5% if the present value of the machine be rupees 100000 what will be the value after 1 year

Answer 1

Heya ☺

Given that

Value of machine = ₹1,00,000

Rate of depreciation = 5 % p.a.

Time period = 1 year

Solution

Value of a machine after 1 year

= P(1-R/100)^n

= 1,00,000(1-5/100)

= 1,00,000(100-5/100)

= 1,00,000(95/100)

= 1,00,000 × 95/100

= ₹95,000

Thanks