  Question

The cost of a machine is supposed to depreciate each year by 12% of its value at the beginning of the year. If the machine is valued at Rs. 44,000 at the beginning of 2008, find its value :  (i) at the end of 2009.  (ii) at the beginning of 2007.

Solution

I) The cost of machine depreciates at the beginning of next year, or we can say at the end of each year, so Value at the end of  2009 = Value at the beginning of 2010 So, Value at the  beginning of 2008 = Rs  44000 Value at the  beginning of 2009 = 88% of 44000 = 0.88 (44000) Value at the beginning of 2010 = 88% of 0.88 (44000) = 0.882×(44000)  = 0.7744 (44000) =  Rs  34073.6 ii) Let Value of machine at the beginning of 2007 be V, so Value of machine at the beginning of 2008 = 0.88 V 0.88 V = 44000 V = Rs   50000 Therefore, Value of machine at the beginning of 2007 was  Rs  50000. MathematicsConcise MathematicsStandard IX

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