Question

The value of a machine, purchased two years ago, depreciates at the annual rate of 10%. If its present value is ₹97200, find :
(i) its value after 3 years
(ii) its value when it was purchased.

Answer 1

Answer:

I will show in pic see that

it is correct

Answer 2

(i) value after 3 years = Rs. 87,480

(ii) value when it was purchased =  Rs. 1,20,000

Explanation:

Value at the end of 2 years = Rs. 97200.

Value at the end of 3rd year = 97200 - 10% depreciation = 97200 - 9720 = Rs. 87,480

Value at the end of second year = 90% of value at the end of first year.

97200 = x ( 1 -  10 / 100)

97200 * 100 / 90 = x

x = Rs. 1,08,000

Value at the end of first year = 90% of purchase price

108000 = x ( 1 -  10 / 100)

108000 * 100 / 90 = x

Purchase price = Rs. 1,20,000