Question

A company purchases an office copier machine for $Rs.50,000$. It is estimated that the copier depreciates in its value at a rate of $15$% per year. What will be the value of the copier after $15$ years?

Answer 1

$Presentvalue\left(P\right)=rs.50000$

$Rateofdepreciation=15\%$

$T=15$

$A=P(1-\frac{R}{100}{)}^T$

$A=50000(1-\frac{15}{100}{)}^{15}$

$=50000(\frac{17}{20}{)}^{15}$

$=4367.71$

$\therefore valueafter15years=Rs.4367.71$