Question

Two years ago Manohar purchased a machine for ₹ 47,000.If its value falls by 3% every year .What is the value of machine today?

• A. Rs 44,222.3
• B. Rs 45,222.3
• C. Rs 44322.3
• D. Rs 44,323.3

Answer 1

The correct option is A Rs 44,222.3

P= Value of machine two years ago= ₹ 47,000

R= -3 p.c.p.a ( since the value is depreciating)

A = Value after two years

$=P(1+\frac{r}{100}{)}^n$

$=47,000(1+\frac{-3}{100}{)}^2$

$=47,000(\frac{97}{100}{)}^2$

$=47,000\times \frac{97}{100}\times \frac{97}{100}$

$=44,222.30$

The present value of machine = ₹ 44,222.30