Question

The value of a machinery is Rs.10000, which is depreciating at the rate of 15% annually. The value of the machinery after 2 years in rupees will be ___.

Answer 1

By the concept of depreciating value:

$A=10000\times {[1-\frac{15}{100}]}^2$
$A=10000\times [\frac{85}{100}\times \frac{85}{100}]$
$A=Rs.7225$
Therefore, after 2 years the value of machinery will be Rs. 7225