The price of a machine in a leather factory depreciates at the rate of 10% every year. If the present price of the machine be ₹ 100000, let us calculate what will be the price of that machine after 3 years.
We know that after depreciation, the price of machine after n years ![]()
Where p = present price of machine, r% = rate of decrease in a year and n = number of years.
Given p = ₹100000, r% = 10% and n = 3 years
⇒ Price of machine after 3 years ![]()
![]()
= ₹72900
∴ Price of the machine after 3 years is ₹72900.
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