Question

The value of the machine depreciation at the rate of 10%annum. If its present value of 10000 what will be its value after 2 year

Answer 1

the rate of depreciation= i = 10%

no.of years for which the machine will be put to use =n= 2

value at the end of 2 years = A

P = value at the beginning = 10000

P(1-i)^n = A

10000(1-10/100)^2= A

10000(1- 0.1)^2 = A

10000(0.9)^2 = A

10000(0.81) = A

A = 8100

A= 8100= value of the machine after 2years

Answer 2

Greetings..!

Present value of car = Rs 10000

Annual Decrease =10%

Decrease in first year = 10% of 10000=(10/100)*10000=Rs 1000

Price at the end of first year = Rs 10000-1000=Rs 9000

Decrease in second year = 10 % = 10% of 9000 = (10/100)*9000=Rs 900

∴It's price after two years = Rs 9000-900=Rs 8100(answer)