two year ago Rajni purchased a machine for rupees ₹75000. if the rate of depreciation is 4% per year find the depreciation in the price of the machine after 2 years
Answers
The original cost of the machine is 75,000
However, the rate of depreciation is 4%/year
If we calculate the depreciation of one year, the equation would be:
(D) Depreciation: 75000×4÷100
D= 300000÷100
D=3000
The depreciation of one year is 3000 and we need to find the depreciation for two years.
Hence, the equation will be D×2, which will be 6000 (3000×2)
6000 is the two years depreciation price for the machine bought at 75000.
Explanation:
Answer: Rajni bought a machine at a price of 75000/- and his rate of depreciation is 4% per year. Therefore, the value of the machine at the end of the first year is 75000 – (75000 X 4/100) = 3000/-. Again at this is the value of the machine at the beginning of the second year. Therefore the value of the value at the end of second year is (75000- 3000)- { (75000-3000) x 4/100} =72000 – 2880 = 69,120/-. The total depreciation in this two year is 3000 + 2880= 5880/-.