1. Arjun purchased a machine worth Rs.16000.If the cost of the machine is depreciating at the rate of 5% per annum, calculate its value after 2 years.

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Solution

Dear Student,
Here is the solution of your question.

Given Cost price of machine is $P = 16000$ .
Rate of depreciation is $r = 5 %$ .
Therefore value of machine after $2$ year is given by:
$A = P {(1 - \frac{r}{100})}^{2} = 16000 {(1 - \frac{5}{100})}^{2} = 16000 \times \frac{19}{20} \times \frac{19}{20} = 14440$
Hence value of machine after $2$ year is Rs. $14440$ .

Regards

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1. Arjun purchased a machine worth Rs.16000.If the cost of the machine is depreciating at the rate of 5% per annum, calculate its value after 2 years.

Dear Student, Here is the solution of your question. Given Cost price of machine is P=16000. Rate of depreciation is r=5%. Therefore value of machine after 2 year is given by: A=P1-r1002=160001-51002=16000×1920×1920=14440 Hence value of machine after 2 year is Rs. 14440. Regards ​​