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The value of a machine depreciates every year by 5%. If the present value of the machine be Rs 100000, what will be its value after 2 years? |
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Answer» Given details are, Present value of machine is = Rs 100000 Every year the depreciation in price is = 5% So, value after two years = 100000 × (100-5)/100 × (100-5)/100 = 100000 × 95/100 × 95/100 = 90250 ∴ Value of machine after two years is Rs 90250. |
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