Question

A machinery is bought at $Rs.60,000$. Its value depreciated at the rate of $7\%p.a.$. Find its value after $2$ years.

Answer 1

Present value$=Rs.60,000$.

It is given that the value depreciates $10\%$ per year.

Value after $n$ years $=A{(1-\frac{r}{100})}^n$ {$A$ is the amount of machine}

Value after $2$ years $=Rs.60,000{(1-\frac{7}{100})}^2=Rs.51,894$