Q176
ArithmeticSimple & Compound Interest
The value of a machine depreciates @25% p.a. If its present value is ₹ 14,400, what will be its worth after 2 years.
- a.₹ 8,100
- b.₹ 9,216
- c.₹ 10,200
- d.₹ 10,800
Answer: (A) ₹ 8,100
Depreciation compounds on the reduced value each year, so the worth after 2 years is 14400 × 0·75 × 0·75 = ₹ 8,100. The value after only one year would be ₹ 10,800, and a flat 50% cut would give ₹ 7,200.