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A manufacturing company is allowed to charge a 10% depreciation on its stock. The initial value of the stock was Rs.60,000/-. After how many years the value of the stock will be 39366?

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#### Solution

Given, rate of depreciation = r = 10%

Initial value of stock = V = ₹ 60,000

The depreciated value of stock = D.V.

= ₹ 39,366/-

By using,

D.V. = V`(1 - "r"/100)^"n"`

`39,366 = 60,000(1 - 10/100)^"n"`

`(1 - 1/10)^"n" = (39,366)/(60,000)`

`(9/10)^"n" = "6,561"/"10,000" = (9/10)^4`

∴ n = 4

∴ The value of the stock will be ₹ 39,366/- after 4 years.

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