Question

The value of a machinery is Rs.80000, which is depreciating at the rate of 10% annually. What will be the value of the machinery after 3 years in rupees?

• A. Rs. 58,320
• B. Rs. 58,230
• C. Rs. 68,320
• D. Rs. 88,320

Answer 1

The correct option is A

Rs. 58,320

Use the concept of depreciating value:

$A=80000\times {[1-\frac{10}{100}]}^3$

= Rs. 58,320
Therefore, after 3 years the value of machinery will be Rs. 58,320