Question

-) The value of a machine worth 5,00,000 depreciates at the rate of 10% every
year. In how many years will its value be * 3,64,500?​

Answer 1

Answer:

Present value = 500000

Reduced value = 364500

Rate of depreciation = 10% p.a.

Consider n years as the period 

We know that 

A/P = (1−r/100)n

Substituting the values 

364500/500000=(1−10/100)n

By further calculation 

(9/10)n=729/1000=(9/10)3

So we get 

n=3 

Therefore, the period in which its value be reduced to 364500 is 3 years.