Question

the value of a machine reduces by 20% per year if the present value of the machine is Rs 30,000 what will be its value after 1 years

Answer 1

Answer:

Rs.24000

Step-by-step explanation:

Here present value of machine = Rs. 30, 000

Cost Reducing Per year = 20%

Cost after 1 year

= Present Value - 20% of Present Value

= 30000 - 20% of 30000

= 30000 - (20/100) × 30000

= 30000 - 6000

= 24000

∴ Value of this machine after one year will be Rs.24000

Note: In case you want to calculate value after more than one year. you can use following formula

$P[1-\frac{R}{100}]^n$

Where, P = Present Value, R = Rate of Depreciation n = Time in years