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

ConceptApplication of Formula for Compound Interest

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.

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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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