The value of a machine depreciates each year by 10 % of it's value at the beginning of that year. It' value when new is Rs 750, find it's value when it is 2 years old.

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Solution:

⇨Given
⇨p=750
⇨r=10%
⇨n=2 months
⇨The value of a machine when it is 2 years old will be

$\large A=p\left ( 1-\frac{r}{100} \right )^{n}$

$\large \Rightarrow A=750\left ( 1-\frac{10}{100} \right )^{2}$

$\large \Rightarrow A=750\left ( 1-\frac{1}{10} \right )^{2}$

$\large \Rightarrow A=750\left (\frac{10-1}{10} \right )^{2}$

$\large \Rightarrow A=750\left (\frac{9}{10} \right )^{2}$

$\large \Rightarrow A=750\times \frac{81}{100}$

$\large \Rightarrow A=75\times \frac{81}{10}$

$\large \Rightarrow A=75\times 8.1$

$\large \Rightarrow A=607.5$ Rs

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