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A machine worth ₹490740 is depreciated at 5% of its opening value each year when the value would reduced by 90%?
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A machine worth ₹490740 is depreciated at 5% of its opening value each...
Depreciation of a machine worth ₹490740 at 5% per year until its value is reduced by 90%

Calculation of Depreciation
The annual depreciation of the machine can be calculated as follows:
Annual Depreciation = Opening Value x Depreciation Rate
= ₹490740 x 5%
= ₹24537

Calculation of Years Required to Reduce Value by 90%
Let the number of years required to reduce the value of the machine by 90% be 'n'.
The value of the machine after n years can be calculated as follows:
Value after n years = Opening Value - Total Depreciation over n years
90% of the opening value = ₹490740 - ₹24537n
Solving for 'n', we get:
n = 16

Conclusion
Therefore, the machine will be depreciated at 5% of its opening value each year for 16 years, after which its value would be reduced by 90%. The total depreciation over 16 years would be:
Total Depreciation = Annual Depreciation x Number of Years
= ₹24537 x 16
= ₹392592.
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A machine worth ₹490740 is depreciated at 5% of its opening value each year when the value would reduced by 90%?
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