A machine depreciates at the rate of 10% of its value at the beginning of a year. If the present value of a machine is rs 4000, find its value after 3 years.
A machine depreciates at the rate of 10% of its value at the beginning of a year. If the present value of a machine is rs 4000, find its value after 3 years.
Explanation
P=Rs. 4000
r=10%
n=3 years
Now, as the value of the machine depreciated every year by 10%,
Hence, the value of the machine after 3 years is Rs. 2916.