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The Cost of a Machine is Supposed to Depreciate Each Year at 12% of Its Value at the Beginning of the Year. If the Machine is Valued at Rs. 44,000 at the Beginning of 2008, Find Its Value : - Mathematics

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Question

The cost of a machine is supposed to depreciate each year at 12% of its value at the beginning of the year. If the machine is valued at Rs. 44,000 at the beginning of 2008, find its value :
(i) at the end of 2009.
(ii) at the beginning of 2007.

Sum
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Solution

Cost of machine in 2008 = Rs. 44,000
Depreciation rate = 12%

(i)  ∴ Cost of machine at the end of 2009
= `"P"( 1 - r/100)^n`

= `44,000( 1 - 12/100 )^2`

= `44,000 xx ( 88/100 )^2`

= Rs. 34,073.60

(ii) Cost of machine at the beginning of 2007(P)

A = `"P"( 1 - r/100)^n`

⇒ 44,000 = P`( 1 - 12/100 )^1`

⇒ 44,000 = P`( 88/100 )^1`

⇒ P = `[44,000 xx 100]/88` = Rs. 50,000

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Concept of Compound Interest - When the Time is Not an Exact Number of Years and the Interest is Compounded Yearly
  Is there an error in this question or solution?
Chapter 3: Compound Interest (Using Formula) - Exercise 3 (D) [Page 53]

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Selina Concise Mathematics [English] Class 9 ICSE
Chapter 3 Compound Interest (Using Formula)
Exercise 3 (D) | Q 1 | Page 53
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