# Mr. Pritesh reduced the value of his assets by 5% each year, which were purchased for Rs.50,00,000/-. Find the value of assets after 2 years. - Mathematics and Statistics

Sum

Mr. Pritesh reduced the value of his assets by 5% each year, which were purchased for Rs.50,00,000/-. Find the value of assets after 2 years.

#### Solution

Given, initial value of assets = V

= ₹ 50,00,000/-

Rate of depreciation per annum = r = 5%

Number of years = n = 2 years

∴ Value of assets after two years = V(1 - "r"/100)^"n"

= 50,00,000(1 - 5/100)^2

= 50,00,000(19/20)^2

= (50,00,000 xx 361)/400

= 12,500 × 361

= 45,12,500

∴ The value of assets after two years is ₹ 45,12,500/-.

Concept: Depreciation
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