The value of a machine depreciates 10% annually. If its present value is Rs. 4000, its value 2 years hence will be:a)Rs. 3000b)Rs. 3240c)Rs. 3260d)Rs. 3280Correct answer is option 'B'. Can you explain this answer?

Question

Answer

(Present value - 10% of present value)
After one year , 4000 - 400 = 3600
After 2nd year , 3600 - 360 = 3240

Answer

B.) 3240

dep. 1st year : 400(10%of 4000)
+
dep. 2nd year 360(10% of 3600)
both year dep 760
machine current year value 400-760=3240

Answer

Simple... use percentage effect.
-10 - 10 + 10×10/100 = 19%
Value after 2 years = 4000×81/100 = 3240

Answer

Given:
- The machine depreciates 10% annually.
- The present value of the machine is Rs. 4000.

To find:
- The value of the machine 2 years hence.

Solution:
To calculate the value of the machine 2 years hence, we need to find the value after 2 years of depreciation.

Step 1: Calculate the depreciation for 1 year.
The machine depreciates 10% annually, so the value after 1 year will be 90% of the present value.
Depreciation for 1 year = 10% of Rs. 4000 = (10/100) * 4000 = Rs. 400

Step 2: Calculate the value after 1 year.
Value after 1 year = Present value - Depreciation for 1 year
Value after 1 year = Rs. 4000 - Rs. 400 = Rs. 3600

Step 3: Calculate the depreciation for the second year.
The machine depreciates 10% annually, so the value after 2 years will be 90% of the value after 1 year.
Depreciation for 2 years = 10% of Rs. 3600 = (10/100) * 3600 = Rs. 360

Step 4: Calculate the value after 2 years.
Value after 2 years = Value after 1 year - Depreciation for 2 years
Value after 2 years = Rs. 3600 - Rs. 360 = Rs. 3240

Therefore, the value of the machine 2 years hence will be Rs. 3240. Hence, option B is the correct answer.

Answer

The correct option is B.
Present value - 4000
Depreciation - 10% of present value annually
After one year value of machine will be = 4000 - 400(10% of 4000) = 3600
After 2nd year value of machine will be = 3600 - 360(10% of 3600) = 3240

Answer

The correct option is B.
Present value - 4000
Depreciation - 10% of present value annually
After one year value of machine will be = 4000 - 400(10% of 4000) = 3600
After 2nd year value of machine will be = 3600 - 360(10% of 3600) = 3240

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