The value of lathe machine depreciates at the rate of 10 % per annum. If the cost of machine at present is Rs. 160,000, then what will be its worth after 2 years?
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Answer:
Value of the machine = Rs 129,600
Step-by-step explanation:
Cost of the machine = Rs 160,000
Find the value of the machine after 1st year:
Depreciation = 10% x Rs 160,000 = 0.1 x 160,000 = Rs 16,000
Value of the machine = 160,000 - 16,000 = Rs 144,000
Find the value of the machine after 2nd year
:Depreciation = 10% x Rs 144,000 = 0.1 x 144,000 = Rs 14,400
Value of the machine = 144,000 - 14,400 = Rs 129,600
Answer: The value of the machine after 2 years is worth Rs 129,600
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