A new computer costs ₹1,00,000. The depreciation of computers is very high as new models with better technological advantages are coming into the market. The depreciation is as high as 50% every year. How much will the cost of computer be after two years ?

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Solution

The cost of the new computer = ₹1,00,000
The depreciation rate = 50% per annum
Time period (T) = 2 yrs
Let the cost of computer after 2 yr = ₹ A
$A = P {(1 - \frac{R}{100})}^{T} = 1, 00, 000 {(1 - \frac{50}{100})}^{2} \Rightarrow A = 1, 00, 000 \times \frac{1}{2} \times \frac{1}{2} = 1, 00, 000 \times \frac{1}{4} ∴ A = ₹ 25, 000$
Hence, the cost of computer after 2 yrs is ₹ 25000.

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A new computer costs ₹1,00,000. The depreciation of computers is very high as new models with better technological advantages are coming into the market. The depreciation is as high as 50% every year. How much will the cost of computer be after two years ?

The cost of the new computer = ₹1,00,000 The depreciation rate = 50% per annum Time period (T) = 2 yrs Let the cost of computer after 2 yr = ₹ A A=P(1−R100)T=1,00,000(1−50100)2⇒A=1,00,000×12×12=1,00,000×14∴A=₹ 25,000 Hence, the cost of computer after 2 yrs is ₹ 25000.