The value of an equipment depreciates by 20% each year. How much less will the value of the equipment be after 3 years ?
Options:
A . 51.2%
B . 48.8%
C . 54%
D . 60%
Answer: Option B Answer: (b) If the present worth of the equipment be Rs.100, then its price after 3 years = 100 × $(80/100)^3$ = Rs.51.2 Depriciation = 48.8% Using Rule 18, If the population/cost of a town/article is P and it decreases/reduces at the rate of r% annually, then, After ‘t' years population/cost = $P(1 - r/100)^t$ Before ‘t' years population/cost = $P/{(1 - r/100)^t}$
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