Question

The value of a machine depreciates every year by $5\%$. If the present value of the machine be Rs. $100,000$, what will be its value after two years?

• A. Rs. $100,050$
• B. Rs. $90,250$
• C. Rs. $99,250$
• D. Rs. $99,000$

Answer 1

Answer: (B)

Rs. $90,250$

current value of Machine $=Rs.100,00$

After 1 year

value decreased by $5\%$

value of Machine is

$Rs.95\%$ $of$ $100,000$

$\Rightarrow \frac{95}{100}\times 100,000=Rs.95,000$

After 2 years

again the value is decreased by $5\%$ from previous year' s Value

Now value of Machine is

$=95\%$ $of$ $95,000$

$=\frac{95}{100}\times 95,000$

$=0.95\times 95,000$

$=Rs.90,250$ is the value of machine at the of two years