A piece of equipment cost a certain factory Rs 60,000. If it depreciates in value, 15% the first, 13.5% the next year, 12% the third year, and so on. What will be its value at the end of 10 years, all percentages applying to the original cost?

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Solution

In the given problem,

Cost of the equipment = Rs 600,000

It depreciates by 15% in the first year. So,

Depreciation in 1 year

It depreciates by 13.5% of the original cost in the 2 year. So,

Depreciation in 2 year

Further, it depreciates by 12% of the original cost in the 3 year. So,

Depreciation in 3 year

So, the depreciation in value of the equipment forms an A.P. with first term as 90000 and common difference as −9000.

So, the total depreciation in value in 10 years can be calculated by using the formula for the sum of n terms of an A.P,

We get,

So, the total depreciation in the value after 10 years is Rs 495000.

Therefore, the value of equipment

So, the value of the equipment after 10 years is.

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Similar questions

A piece of equipment cost a certain factory $R s . 6, 00, 000$ . If it depreciates in value, $15 %$ the first, $13.5 %$ the next year, $12 %$ the third year, and so on. What will be its value at the end of 10 years, all percentages applying to the original cost?

Q. A piece of equipment costs a certain factory

R s . 600, 000.

If it in value,

15 %

the first,

13.5 %

the next year,

12 %

the third year and so on. What will be it's a value at the end of

10

years, all percentages applying to the original cost

In a factory, the cost of a machine is ₹ 6,00,000. If its value depreciates 15% the first year, 13.5 % the next year, 12% the third year, and so on. Calculate its value at the end of 10 years, applying all percentages to the original cost?

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