Question

Question 54

The cost of a sewing machine is Rs 7000. Its value depreciates at 8% per annum. Then, the value of the machine after 2 yr is Rs 5924.80.

Answer 1

True
Principal = Rs 7000
Rate of depreciation = 8% per annum
Time period = 2 yr
$\therefore$ Depreciated amount after 2 yr is given by
$A=P{(1-\frac{R}{100})}^n=7000{(1-\frac{8}{100})}^2=7000\times \frac{23}{25}\times \frac{23}{25}=11.2\times 23\times 23=Rs.5924.8$