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
Dtydg6h
90000
To find the value of the machine after 2 years, we need to calculate the depreciation for each year and subtract it from the previous year's value.
The depreciation rate is given as 5% per year. This means that every year, the value of the machine decreases by 5% of its current value.
Let's calculate the value of the machine year by year:
Year 0 (Present value): $100,000
Year 1: The machine depreciates by 5%, which is (5/100) * $100,000 = $5,000. So, the value after 1 year is $100,000 - $5,000 = $95,000.
Year 2: The value after 2 years would be the value after 1 year depreciated by another 5%. So, the machine now depreciates by (5/100) * $95,000 = $4,750. Subtracting this from the value after 1 year, we get $95,000 - $4,750 = $90,250.
Therefore, the value of the machine after 2 years would be $90,250.
V = Vo - Vo*r*t.
V = 100,000 - 100,000*0.05*2 =