1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

A piece of equipment cost a certain factory Rs.600,00. If it depriciates 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?

Open in App
Solution

Hi! Here is the answer to your question. Cost of the equipment in the end of first year = Rs 600 – 15% of Rs 600 = Rs 600 – Rs 90 = Rs 510 Cost of the equipment in the end of second year = Rs 600 – 13.5% of Rs 600 = Rs 600 – Rs 81 = Rs 519 Cost of the equipment in the end of 3rd year = Rs 600 – 12% of Rs 600 = Rs 600 – Rs 72 = Rs 528 The numbers 510, 519, 528, … are in A.P whose first term is 510 and the common difference is 9. ∴ Cost of the equipment at the end of 10 year = a + (10 – 1) d = 510 + 9 × 9 = Rs 591 Hope! You got the answer. Cheers!

Suggest Corrections
0
Join BYJU'S Learning Program
Related Videos
Calculating Population
GEOGRAPHY
Watch in App
Explore more
Join BYJU'S Learning Program