the value of a machine depreciates every year by 5% .if the present value of the machine is 100000 ,find the value after 2 years
V = Vo - Vo*r*t.
V = 100,000 - 100,000*0.05*2 = 90,000.
To find the value of the machine after 2 years, we need to apply the depreciation rate of 5% per year.
First, let's calculate the value of the machine after the first year:
Depreciation for the first year = 5% of 100,000 = 0.05 x 100,000 = 5,000
Value after the first year = 100,000 - 5,000 = 95,000
Next, let's calculate the value of the machine after the second year:
Depreciation for the second year = 5% of 95,000 = 0.05 x 95,000 = 4,750
Value after the second year = 95,000 - 4,750 = 90,250
Therefore, the value of the machine after 2 years would be 90,250.