The value of a machine depreciates at the rate of 10% per annum. If its present value is ₹1,62,000, what will be its worth after 2 years? What was the value of the machine 2 years ago?
Answer
Answer (as printed):
Explanation
Value of the machine after 2 years $=₹\left[162000 \times\left(1-\frac{10}{100}\right)^{2}\right]=₹\left(162000 \times \frac{9}{10} \times \frac{9}{10}\right)=₹ 131220$. Value of the machine 2 years ago $=₹\left[\frac{162000}{\left(1-\frac{10}{100}\right)^{2}}\right]=₹\left(162000 \times \frac{10}{9} \times \frac{10}{9}\right)=₹ 200000$.
Explanation as extracted from the printed page; notation may be imperfect.