The value of a machine worth 500000 is depreciating at the rate of 10% every year . In how many years will its value be reduced to 364500?

Explanation

The present value of a machine worth =Rs`500000`
The reduced value of a machine =Rs`364500`
The rate of depreciation `r=10%`
Let the time after which the cost of machine depreciate to Rs`364500 `be n years
We know the depreciation of material is given by the formula
` A=P(1-R/100)^n`
So by substituting the values in the formula we can write
`364500=500000(110/100)^n
729/1000=(9/10)^n
(9/10)^3=(9/10)^n`
Comparing both side,we get `n=3`
Time will be `3` years.