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A machine depreciates in value each year at the rate of 10% of its previous value. However, every second year there is some maintenance work so that in that particular year, depreciation is only 5% of its previous value. If at the end of the fourth year, the value of the machine stands at Rs 1,46,205, then find the value of machine at the start of the first year.
  • a)
    Rs 1,90,000
  • b)
    Rs 2,00,000
  • c)
    Rs, 1,95,000
  • d)
    Rs 2,10,000
  • e)
    None of these
Correct answer is option 'B'. Can you explain this answer?
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Solution:

Let us assume the value of the machine at the start of the first year as x.

Depreciation in the first year = 10% of x = 0.1x
Value of the machine at the end of the first year = x - 0.1x = 0.9x

Depreciation in the second year = 5% of 0.9x = 0.045x
Value of the machine at the end of the second year = 0.9x - 0.045x = 0.855x

Depreciation in the third year = 10% of 0.855x = 0.0855x
Value of the machine at the end of the third year = 0.855x - 0.0855x = 0.7695x

Depreciation in the fourth year = 5% of 0.7695x = 0.038475x
Value of the machine at the end of the fourth year = 0.7695x - 0.038475x = 0.731025x

Given that the value of the machine at the end of the fourth year is Rs 1,46,205.

0.731025x = 1,46,205
x = 1,46,205/0.731025
x = Rs 2,00,000

Therefore, the value of the machine at the start of the first year is Rs 2,00,000.

Answer: Option B.
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A machine depreciates in value each year at the rate of 10% of its previous value. However, every second year there is some maintenance work so that in that particular year, depreciation is only 5% of its previous value. If at the end of the fourth year, the value of the machine stands at Rs 1,46,205, then find the value of machine at the start of the first year.a)Rs 1,90,000b)Rs 2,00,000c)Rs, 1,95,000d)Rs 2,10,000e)None of theseCorrect answer is option 'B'. Can you explain this answer?
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A machine depreciates in value each year at the rate of 10% of its previous value. However, every second year there is some maintenance work so that in that particular year, depreciation is only 5% of its previous value. If at the end of the fourth year, the value of the machine stands at Rs 1,46,205, then find the value of machine at the start of the first year.a)Rs 1,90,000b)Rs 2,00,000c)Rs, 1,95,000d)Rs 2,10,000e)None of theseCorrect answer is option 'B'. Can you explain this answer? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about A machine depreciates in value each year at the rate of 10% of its previous value. However, every second year there is some maintenance work so that in that particular year, depreciation is only 5% of its previous value. If at the end of the fourth year, the value of the machine stands at Rs 1,46,205, then find the value of machine at the start of the first year.a)Rs 1,90,000b)Rs 2,00,000c)Rs, 1,95,000d)Rs 2,10,000e)None of theseCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A machine depreciates in value each year at the rate of 10% of its previous value. However, every second year there is some maintenance work so that in that particular year, depreciation is only 5% of its previous value. If at the end of the fourth year, the value of the machine stands at Rs 1,46,205, then find the value of machine at the start of the first year.a)Rs 1,90,000b)Rs 2,00,000c)Rs, 1,95,000d)Rs 2,10,000e)None of theseCorrect answer is option 'B'. Can you explain this answer?.
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