    Question

# 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?

A

₹ 1,00,000

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B

₹ 1,05,000

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C

₹ 1,50,000

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D

₹ 1,05,650

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Solution

## The correct option is B ₹ 1,05,000 Suppose that the cost of machine be ₹ 100. Now the percentages of depreciation at the end of first, second, third years are 15, 13.5, 12, which are in A.P Here, a = 15 and d = - 1.5 Hence, percentage of depreciation in the tenth year = a+(10−1)d=15+9(−1.5)=1.5 Also total value depreciated in 10 years = 15 + 13.5 + 12 + ... + 1.5 = 102(15+1.5) = ₹ 82.50 Hence, the value of equipment at the end of 10 years = 100 - 82.5 = ₹ 17.5 The total cost being Rs. 6,00,000/100 * 17.5 = ₹ 1,05,000  Suggest Corrections  0      Similar questions  Related Videos   Shares
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