The value of machinery is Rs.20000. The value is depreciating by 10% every year. What will be the value of the machinery after 3 years?

Rs. 14580

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Rs. 15580

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Rs. 16580

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Rs. 14500

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Solution

The correct option is A
Rs. 14580

Amount on depreciation = Original amount $(1 - \frac{r}{100})^{n}$

= $20000 (1 - \frac{10}{100})^{3}$

= $20000 (\frac{90}{100})^{3}$

= Rs. 14580

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The value of machinery is Rs.20000. The value is depreciating by 10% every year. What will be the value of the machinery after 3 years?

The correct option is A Rs. 14580 Amount on depreciation = Original amount (1−r100)n = 20000(1−10100)3 = 20000(90100)3 = Rs. 14580

The correct option is A
Rs. 14580

Amount on depreciation = Original amount $(1 - \frac{r}{100})^{n}$

= $20000 (1 - \frac{10}{100})^{3}$

= $20000 (\frac{90}{100})^{3}$

= Rs. 14580