Question

The cost of a machine dep reciated by Rs 2592 during the third year and by Rs 2332.80 during the fourth year. Calculate :

The cost at the end of the fourth year. 

Answer 1

Here, P =Rs 32,000; r = 10 % ; t = 4 years

${\displaystyle \text{A}=\text{P}{(1+\frac{\text{r}}{100})}^{\text{n}}}$

${\displaystyle \text{A}=\text{Rs} 32000{(1-\frac{10}{100})}^4}$

A= Rs 32, 000 x 0.9 x 0.9 x 0.9 x 0.9

A= Rs 20,995.20 

Cost at the end of the fourth year = Rs 20, 995.20