Problems on Depreciation
Problems on Depreciation
It is well known fact that the constant use of any machine or any other article causes wear and tear due to which its value decreases with time.
Depreciation: The relative decrease in the value of a machine over a period of time is called its depreciation.
Rate of Depreciation: Depreciation per unit time is called the rate of depreciation.
Depreciated Value: The value at any time is called the depreciated value.
Formulae for Depreciation:
Formula1: If be the value of an article at a certain time and R% per annum is the rate of depreciation, then the value
at the end of n years is given by
Formula 2: If is the value of an article at certain time and the rate of depreciation is
for first
years,
for next
years and so on and
for the last
years, then the value at the end of
is given by
Illustration: Jack purchased an old scooter for Rs 16000. If the cost of scooter after 2 years depreciates to Rs 14440, find the rate of depreciation
Solution: Let the rate of depreciation be R% per year. Then,
Take square root on both sides, we have
Hence, the rate of depreciation is 5% pr annum.
The value of a flat worth Rs 500000 is depreciating at the rate of 10% per annum. In how many years will its value be reduced to Rs 364500? | |||
| Right Option : A | |||
| View Explanation | |||
The value of a residential flat constructed at a cost of Rs 100000 is depreciating at the rate of 10% per annum. What will be its value 3 years after construction? | |||
| Right Option : C | |||
| View Explanation | |||
The value of a property increases every year at the rate of 5%. If its value at the end of 3 years of be Rs 411540, what was its original value at the beginning of these years? | |||
| Right Option : A | |||
| View Explanation | |||
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