The value of a machine depreciates @ 25% p.a. If its present value is Rs. 14400, what will be its worth after 2 years.ARs. 8100BRs.9216CRs.22500DRs.25600
Question
The value of a machine depreciates @ 25% p.a. If its present value is Rs. 14400, what will be its worth after 2 years.ARs. 8100BRs.9216CRs.22500DRs.25600
Solution
The value of the machine depreciates at a rate of 25% per annum. This means that each year, the value of the machine is 75% of its value the previous year.
Step 1: Calculate the value of the machine after the first year. The value of the machine after the first year would be 75% of its initial value. So, we calculate 75% of Rs. 14400, which is Rs. 10800.
Step 2: Calculate the value of the machine after the second year. The value of the machine after the second year would be 75% of its value after the first year. So, we calculate 75% of Rs. 10800, which is Rs. 8100.
So, the value of the machine after 2 years would be Rs. 8100. Therefore, the answer is A: Rs. 8100.
Similar Questions
The value of a machine depreciates at a rate of 10% every year. It was purchased 3 years ago. If its present value is Rs. 8748, its purchase price was :a.14000b.12000c.10000d.16000
A machine worth of Rs. 4,90,740 is depreciated at 15% on its opening valueeach year. When its value reduces to Rs. 2,00,000(a) 4 years 6 months(b) 4 years 7 months(c) 4 years 5 months(d) 5 years 7 months approximately
A piece of equipment worth $1 million in 2012 depreciates linearly over 20 years. The scrap value of the equipment is $100,000. What will be the book value of the machine in 2030?
A machine is depredated at a rate of 10% on reducing balance the original coast was RS. 10,000, after how many years it will be valued at Rs.6561
The value of an article depreciates every year at the rate of 10% of its value. If the present value of the article is Rs.729, then its worth 3 years ago wasRs.1250Rs.1000Rs.1125Rs.1200
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.