The value of a machine depreciates every year by 10%. If its present value is ₹35,000, then the value of the machine after 2 years will be:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹28,350
Calculations:
According to the question;
⇒ Value of machine after 2 years = 35000 × (100 - 10)% × (100 - 10)%
⇒ 35000 × 90% × 90%
⇒ 35000 × 0.9 × 0.9
⇒ 28350