Problem Statement
A machine costs ₹50,000 and depreciates at 20% per annum compounded yearly. Its value after 2 years is:
Explanation
Use compound decrease. Multiply by zero point eight each year. After two years the factor is zero point six four. Fifty thousand times zero point six four equals thirty two thousand.
Code Solution
SolutionRead Only
Value = 50000×(1−0.20)^2 = 50000×0.64 = 32000
