The value of a machine depreciates 10% annually. If its present value is ₹ 25000, what will be its value after 1 year?

Options

A. `₹27500`
B. `₹22500`
C. `₹25250`
D. none of these

Answer

To find the value of the machine after 1 year, we need to calculate the depreciation and subtract it from the present value.

### Step-by-Step Solution:

1. **Identify the Present Value and Depreciation Rate:**
- Present Value (PV) = ₹ 25,000
- Depreciation Rate = 10%

2. **Calculate the Depreciation Amount:**
- Depreciation Amount = (Depreciation Rate / 100) × Present Value
- Depreciation Amount = (10 / 100) × 25,000
- Depreciation Amount = 0.10 × 25,000
- Depreciation Amount = ₹ 2,500

3. **Calculate the Value After 1 Year:**
- Value After 1 Year = Present Value - Depreciation Amount
- Value After 1 Year = 25,000 - 2,500
- Value After 1 Year = ₹ 22,500

### Final Answer:
The value of the machine after 1 year will be ₹ 22,500.

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