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

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Solution

Use the concept of depreciating value:

$A = 10000 \times {[1 - \frac{15}{100}]}^{2}$

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

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Use the concept of depreciating value:

$A = 10000 \times {[1 - \frac{15}{100}]}^{2}$

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