SSC (English Medium) Class 8Maharashtra State Board
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The Cost Price of a Machine is 2,50,000. If the Rate of Depreciation is 10% per Year Find the Depreciation in Price of the Machine After Two Years. - SSC (English Medium) Class 8 - Mathematics

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Question

The cost price of a machine is 2,50,000. If the rate of depreciation is 10% per year find the depreciation in price of the machine after two years.

Solution

Here, P = Cost price of the machine = 2,50,000
A = Cost price after 2 years
I = Depreciation in price after 2 years
R = Rate of depreciation = 10 %
N = 2 years

A = P `(1 + "R"/100)^"N"`

   = 250000 `(1 + (-10)/100)^2`

    = 250000 `(1 + 1/10)^2`

    = 250000  `(9/10)^2`

    = 202500

Also,
I = P − A
  = 250000 − 202500
  = 47500

Hence, the depreciation in price of the machine after two years is Rs 47,500.

  Is there an error in this question or solution?

APPEARS IN

 Balbharati Solution for Balbharati Class 8 Mathematics (2019 to Current)
Chapter 14: Compound interest
Practice Set 14.2 | Q: 4 | Page no. 93
Solution The Cost Price of a Machine is 2,50,000. If the Rate of Depreciation is 10% per Year Find the Depreciation in Price of the Machine After Two Years. Concept: Application of Formula for Compound Interest.
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