Question

The cost of a machine depreciates by 10% every year. Find the price after 2 years if the initial cost of the machine was ₹30,000.

• A. ₹21,300
• B. ₹24,450
• C. ₹25,300
• D. ₹24,300

Answer 1

The correct option is D

₹24,300

Cost of machine = ₹30,000

Rate of depreciation = 10%

Cost of the machine at the end of first year = ₹30,000 - $(\frac{10}{100}$ $\times$ 30,000)
= ₹30,000 - ₹3,000
= ₹27,000

Cost of the machine at the end of second year = ₹27,000 - ($\frac{10}{100}$ $\times$ 27,000)
= ₹27,000 - ₹2,700
= ₹24,300