The cost price of

Principal = 250000/-, Rate (decrement) = 10% (p.c.p.a), Duration (n) = 2 years

²

²

A = 250000 (1-0.1)²

A = 250000 (0.9)²

A = 250000 (0.81)

∴A= 202500/-

∵ C.I. = A - P

∴ Depreciation in Price (C.I.) = 202500 – 250000

Depreciation in Price (C.I.) = -47500/-

(-) sign denotes the depreciation in amount.

∴ Depreciation in Price of the machine after 2 years will be 47500/- .