Present Value of a printing machine is Rs 1,80,000 (Indian Currency, 1 Rs = 100 paisa) Value of the machine depreciated at the rate of the machine after 34 years?

Question

I am puzzled because of this 34 years!!!!!!!!!!!!!!!!

1263 views around the world

You can reuse this answer
Creative Commons License

Answer 1 · 2017-05-10T04:55:50

Just follow following steps.

No need to be puzzled.

Just think that Present Value is #P#

and discounted value #D# after discounting say at #r%# after #n# years will be given by

#D=P(1-r/100)^n#

You have not given rate of depreciation #r# but let #r=10%# and years are #34#

#D=P(1-10/100)^34=Pxx(9/10)^34=Pxx(0.9)^34#

You can use a scientific calculator to calculate this.

Just use function #x^y# and for this first enter #0.9# then click at #x^y# and then #34# and you get

#0.02781283894436935112572857762318#

Multiply it by #P=180000# and you get

discounted value as #Rs.5006.31#

If #r# is different you can calculate it accordingly.