Question

The value

of a machine is estimated to be 27.000 4 c.at the end of 2004 and to be 21,870 at the beginning of 2007. Supposing it depreciates at a constant rate per year of its value at the beginning of the year calculate

(the rate of depreciation

i) the value of the machine at the end of 2007 and at the beginning of 2004

Answer 1

Answer:

30,000 *ANS*

Step-by-step explanation:

P=27000\ Rs.; A= 21870 \ Rs.; \ r=r\%; \ n=2 Years

At the end of

2007

A=P \Big(1-

\frac{r}{100}

\Big)^n \Rightarrow 21870= 27000 \Big(1-

\frac{r}{100}

\Big)^2 \Rightarrow r=10\%

At the beginning of

2004

A=P \Big(1-

\frac{r}{100}

\Big)^n \Rightarrow 27000= A \Big(1-

\frac{10}{100}

\Big)^1 \Rightarrow A=30000 \ Rs.

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