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A manufacturer purchases a second hand m...

A manufacturer purchases a second hand machine for Rs. 60000 and spends some amount towards repairs thane its vaue goes up to Rs. 90000. If depreciation is `10%` per annum, what will be the value of the machine after two years ?

A

Rs. 48600

B

Rs. 81000

C

Rs. 67200

D

Rs. 72900

Text Solution

Verified by Experts

The correct Answer is:
D
(i) Reduce the total value by 10% twie.
(ii) `A=P(1- (R )/(100))`, where P is the present value and R is the rate of depreciation .
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