# The value of a machine depreciates every year by 10%. What will be its value after 2 years, if its present value is Rs 50,000?

2
by yashgupta638

2015-06-08T07:20:00+05:30
Actual price of the machine = Rs. 50000
decrease in price in 1st year = 10%
amount of decrease in 1st year = (10/100)*50000
= Rs. 5000
price of the machine after decrease = 50000-5000
= Rs. 45000
decrease in price in the 2nd year = 10%
amount of decrease in price in the 2nd year = (10/100)*45000
= Rs. 4500
therefore the final price of the machine after 2 years = 45000-4500
= Rs. 40500

• Brainly User
2015-06-08T08:21:00+05:30

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Shortcut Method :
Worth After N Years=Present Worth (1 - Rate of Depreciation )^N
Here ,
N = 2
Rate of Depreciation = 10 %
Present Worth = 50,000
Therefore ,
Worth of Machine After 2 years = 50,000(1-10/100)^2
= 50,000(9/10)(9/10)
= 50,000 *81/100
= 500*81
= 40,500

Hope this helps you !!

Thank You :)!!
Cheers!!!
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Thank You!!! :)
Here long cut method seems better
thats is fine but if the number of years are 20 they my method is optimum !! :)
yes :)