Question

A machine worth Rs. 80,000 depreciates at 10% per year. Find its value after 2 years.

Solution

1. Each year, the value is multiplied by 1 - 10/100 = 0.9.
2. Value after 2 years = 80,000 x 0.9 x 0.9.
3. Value = Rs. 64,800.