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The value of a machine depreciates every year by 5%. If the present value is ? 40,000, what will be its value after a year? |
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Answer» ₹38,000Step-by-step explanation:PRESENT VALUE (P) = ₹40,000Rate of depreciation (R) = 5%Time (n) = 1 yearFormula for finding value = P (1 - R/100)ⁿ=> Value after 1 year = 40,000 (1 - 5/100)¹ = 40,000 (19/20) = ₹38,000 |
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