The value of machine depreciates each year by 10% after every year .if at the end of 3 year its value is 8748, find the purchase mount
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Rate of depreciation = i = 10%
No.of years for which the machine is put to use= n = 3
value of the machine at the end of 3 rd year = F = 8748
F = A ( 1 - i)^n
where A =Purchase Amount/Initial Amount
8748 = A ( 1 - 10/100) ^3
8748 = A ( 1 - 0.1) ^3
8748 = A ( 0.9) ^3
8748 = A(0.729)
8748/0.729 = A
12000 = A = Is the purchase amount/initial Value.......
No.of years for which the machine is put to use= n = 3
value of the machine at the end of 3 rd year = F = 8748
F = A ( 1 - i)^n
where A =Purchase Amount/Initial Amount
8748 = A ( 1 - 10/100) ^3
8748 = A ( 1 - 0.1) ^3
8748 = A ( 0.9) ^3
8748 = A(0.729)
8748/0.729 = A
12000 = A = Is the purchase amount/initial Value.......
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