the value of a motorcycle is depreciating at the rate of 5 % per year . if its present value is rs 45000 what will be value after 2 years.
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current value of Machine =Rs.100,00
After 1 year
value decreased by 5%
value of Machine is
Rs.95% of 100,000
⇒10095×100,000=Rs.95,000
After 2 years
again the value is decreased by 5% from previous year' s Value
Now value of Machine is
=95% of 95,000
=10095×95,000
=0.95×95,000
=Rs.90,250 is the value of machine at the of two years
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