The value of a machine depreciates 10% annually . What will be its value after 2 years if its present value is Rs 200000

The present value of a machine is *P =* Rs.2,00,000

The rate of depreciation is *R = *10%

Time period *N* *=* 2 years

We need to find the depreciated value of the machine after 2 years.

Use the formula

Substitute the values *P =* Rs.2,00,000, *R = *10, *N* *=* 2 in the above formula, we have

Thus, the depreciated value of the machine is Rs.1,62,000

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