Question

The value of a machine, purchased two years ago, depreciates at the annual rate of 10%. If its present value is Rs97200, find :

(i) Its value after 3 years
(ii) its value when it was purchased.​

Answer 1

☆Required Solution☆

(i) Value after 3 years :

= (Present value) × [ $1- \frac{10}{100} ^{3}$ ]

$97200 \times \frac{9}{10} \times \frac{9}{10} \times \frac{9}{10} = \frac{708588}{10}$

$70858.80$

(ii) Present Value :

= (value 2 years ago) × $1 - \frac{10}{100} ^{2}$

Rs97200 = (value 2 years ago) × $\frac{9}{10} \times \frac{9}{10}$

Value 2 years ago :

= Rs [$97200 \times \frac{10}{9} \times \frac{10}{9}] = Rs 120000$