Question

The value of a machine depreciates every year by $10\%$. If its present value is $Rs.90000$ then what will be its value after two years?

Answer 1

Given Present value$=Rs.90000$.

Value depriciates $10\%$ per year.

Value after $n$ years $=PV\times {(1-\frac{\%depreciation}{100})}^n$

Value after two years$=Rs.90000{(1-\frac{10}{100})}^2=Rs.72,900$