Question

The value of a machinery is ₹10,000, which is depreciating at the rate of 15% annually. What will be the value of the machinery after 2 years in rupees?

• A. ₹ 7225
• B. ₹ 5442
• C. ₹ 6542
• D. ₹ 7658

Answer 1

The correct option is A

₹ 7225

Use the concept of depreciating value:

$A=P\times {[1-\frac{R}{100}]}^n$

$A=10,000\times {[1-\frac{15}{100}]}^2$

= ₹ 7225
Therefore, after 2 years the value of machinery will be ₹ 7225.