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

Solution

## The correct option is D Rs. $$90, 250$$current value of Machine $$=Rs. 100,00$$After 1 year  value  decreased by $$5 \%$$value of Machine  is$$Rs. 95 \%$$ $$of$$ $$100,000$$ $$\Rightarrow \dfrac{95}{100} \times 100,000 = Rs. 95,000$$ After 2 years again the value is  decreased by $$5 \%$$ from previous year' s Value Now  value of Machine  is$$= 95 \%$$ $$of$$ $$95,000$$$$= \dfrac{95}{100} \times 95,000$$ $$=0.95\times 95,000$$ $$= Rs. 90,250$$ is the value of machine at the of two yearsMathematics

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