Question

Mark (✓) against the correct answer
The value of a machine depreciated 10% annually. If its present value is Rs 25000, what will be its value after 1 year?

(a) Rs 27500
(b) Rs 22500
(c) Rs 25250
(d) none of these

Answer 1

(c) Rs. 25250

Present value of the machine = Rs 25000
Decrease in its value after 1 year = 10% of Rs 25000
= Rs $\left(\frac{10}{100}\times 25000\right)$ = Rs 2500
Depreciated value after 1 year = Rs (25000 − 2500) = Rs 22500

Hence, the value of the machine after 1 year will be Rs 22500