the value of machine worth Rs 50000 is depreciating at the rate of 10percent every year.In how many years will it's value be reduced to Rs364500
Answers
Answered by
159
I think given machine worth is wrong. one zero is missing.
if machine worth 500000 then we finds it's answer.
given, Machine Principal = 500000
Machine Amount = 364500
Amount = Principal (1-R/100)^n
364500 = 500000(1-10/100)^n
364500/500000 = (90/100)^n
729/1000 =(9/10)^n
(9/10)^3 = (9/10)^n
n = 3
Hence , In 3 years machine value be reduced to 364500.
hope u would like.
if machine worth 500000 then we finds it's answer.
given, Machine Principal = 500000
Machine Amount = 364500
Amount = Principal (1-R/100)^n
364500 = 500000(1-10/100)^n
364500/500000 = (90/100)^n
729/1000 =(9/10)^n
(9/10)^3 = (9/10)^n
n = 3
Hence , In 3 years machine value be reduced to 364500.
hope u would like.
Answered by
9
Answer:
Rate of depreciation under Double Declining method =
Straight line Depreciation rate*2
Under Straight Line Method, Depreciation =
cost of asset - Salvage value / estimated life of asset
50000 - 5000/5 = 9000.
Depreciation rate = 9000/50000*100 = 18%
Rate of depreciation under Double Declining Method
18*2 = 36%
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