Question

Machinery worth ₹ 10000 depreciated by 5%. Find its value after 1 year.

Answer 1

The value of machinery after 1 year on 5% depreciation

= \(x(1\,-\,\frac{R}{100})^n\)   [ \(\because\) x = 10000, n = 1, R = 5% ] 

= \(10000(1\,-\,\frac{5}{100})^1\)

= \(10000(\frac{95}{100})\)

= 95 × 100 

= ₹ 9500