The value of a machine depreciates at the rate of 10 percent per annum If the present value is 81000 what will be its worth after 3 years What was the value of machine 2 years ago?

Answer 1

Value of the machine after 3 years = ${81000 * (1 - 10/100) raise to the power 3) = $ 59049

Value of the machine 2 years ago = $ [81000 / (1- 10/ 100)raise to the power 2 ]

= $ [81000 * 10/9 * 10/9] = $ 100000

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