Q. 44.3( 24 Votes )

The cost price of

Answer :

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/- .


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