Arithmeticmedium · Past Paper

A machine is depreciated at 10% per year. If its present value is Rs 10000, what will be its value after 2 years?

ARs 8000
BRs 8100
CRs 9000
DRs 7000

✓ Correct Answer: BRs 8100

V = P(1 - R/100)^T = 10000(1 - 0.1)^2 = 10000(0.81) = 8100.

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