Question

The value of a machine depreciates every year by 10%. If its present value is 50,000 the the value of the machine after 2 years is ....

• A. 40,050
• B. 45,000
• C. 40,005
• D. 40,500

Answer 1

The correct option is D 40,500

Original price $Rs50,000$

Rate of decrement $=10\%$

$\therefore$ Price after 1 year $=50000(1-\frac{10}{100})$

$=50000\times \frac{90}{100}$

$=45000$

Price after 2 years $=45000(1-\frac{10}{100})$

$=45000\times \frac{90}{100}$

$=40500.$

$Rs40,500$