Question

The value of machine depreciates at the rate 8? per annum.if the value of the machine is now $ 75,000 what will be the value after 3 years?

Answer 1

$$\begin{gathered} \mathrm{Principal}=\&75000=\mathrm{Cost}\mathrm{price}\mathrm{of}\mathrm{machine} \\ \mathrm{Time}=3\mathrm{years} \\ \mathrm{Depreciation}=8\%\mathrm{of}\&75000\mathrm{every}\mathrm{year} \\ =\mathrm{P}{\left(1-\frac{\mathrm{R}}{100}\right)}^{\mathrm{n}} \\ =75000{\left(1-\frac{8}{100}\right)}^3 \\ =75000\times \frac{92}{100}\times \frac{92}{100}\times \frac{92}{100} \\ =58401.6 \end{gathered}$$