3) The value of a machine is rupees 48000. if each your its value depreciates by 5%, what will its value be at the end of 2 years

1 thought on “3) The value of a machine is rupees 48000. if each your its value depreciates by 5%, what will its value be at the end of 2 years”

1. Given:

   • Value of a machine is ₹48000.
   • It’s value depreciates by 5% per year.

   To Find:

   • What will be the value of the machine after 2 years ?

   Solution:

   Present value of the machine = ₹48000

   ∵ Depreciation rate of the value of the machine = 5% per year

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   ∴ Value of the machine after 1st year = ₹48000 – (5% of ₹48000)

   [tex]= Rs.\:48000-Rs.\:\bigg(\dfrac{5}{1\!\!\!\not{0}\!\!\!\not{0}}\times480\!\!\!\not{0}\!\!\!\not{0}\bigg)[/tex]

   [tex]\\[/tex]

   After cutting off the zeros, we get:

   [tex]= Rs.\:48000-Rs.\:(5\times480)[/tex]

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   After multiplying 5 by 480 and opening the brackets, we get:

   [tex]= Rs.\:48000-Rs.\:2400[/tex]

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   After subtracting, we get:

   [tex]= Rs.\:45600[/tex]

   [tex]\\[/tex]

   Now, value of the machine = ₹45600

   Value of the machine after 2nd year = ₹45600 – (5% of ₹45600)

   [tex]= Rs.\:45600-Rs.\:\bigg(\dfrac{5}{1\!\!\!\not{0}\!\!\!\not{0}}\times456\!\!\!\not{0}\!\!\!\not{0}\bigg)[/tex]

   [tex]\\[/tex]

   After cutting of the zeros, we get:

   [tex]= Rs.\:45600-Rs.\:(5\times456)[/tex]

   [tex]\\[/tex]

   After multiplying 5 by 456 and opening the brackets, we get:

   [tex]= Rs.\:45600-Rs.\:2280[/tex]

   [tex]\\[/tex]

   After subtracting, we get:

   [tex]= Rs.\:43320[/tex]

   Hence, the value of the machine after 2 years will be ₹43320.

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