Question

the value of money depricates every year by 5% . if the present value of the machine be ₹ 100000 what will be the valie of 2 years please answer step by step​

Answer 1

Answer:

THE VALUE OF THE MACHINE AFTER 2 YEARS IS ₹90,250

Step-by-step explanation:

PARAMETERS GIVEN,

PRINCIPAL = ₹1,00,000

RATE% = 5%

TIME = 2 YEARS

SO,

WE KNOW THE FORMULA FOR THE CASE OF DEPRECIATION,

SO,

A = P(1-R/100)ⁿ

   = 100000(1 -5/100)²

   = 100000(95/100)²

   = (100000*95*95)/100*100

   = 902500000/10000

   = ₹90,250

SO,

VALUE OF THE MACHINE AFTER 2 YEARS IS ₹90,250

I HOPE YOU UNDERSTOOD THE QUESTION!!!

Answer 2

Step-by-step explanation:

current value of Machine =Rs.100,00

After 1 year

value decreased by 5%

value of Machine is

Rs.95% of 100,000

$\frac{95}{100} \times 10000 \: = rs.95000$

After 2 years

again the value is decreased by 5% from previous year' s Value

Now value of Machine is

=95% of 95,000

=

$\frac{95}{100} \times 95000$

=0.95 ×95,000

=Rs.90,250 is the value of machine at the of two years