The value of a machine depreciates every year by 10%. If its present value is Rs

Question

The value of a machine depreciates every year by 10%. If its present value is Rs.50,000 then the value of the machine after 2 years is _________.

Options:

A . Rs.45,000

B . Rs.40,050

C . Rs.40,005

D . Rs.40,500

Answer: Option D
Answer: (d)
Using Rule 18,
Required value = $50000(1 - 10/100)^2$
= $50000 × {9 × 9}/100$ = Rs.40500

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