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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» 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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