1.

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?

Answer»

Present value of machine = Rs.100000 

Depreciation in price every year = 5% 

Hence,

\(={100000}\times\frac{100-5}{100}\times\frac{100-5}{100}\)

\(={100000}\times\frac{95}{100}\times\frac{95}{100}\)

= Rs.90250



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