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The price of a machine is depreciated at...

The price of a machine is depreciated at the rate of 10% yearly and the ultimate scrap value was Rs. 6561. Find the effective life of the macine. The price of the machine is Rs. 10,000.

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To find the effective life of the machine, we will use the formula for depreciation. The price of the machine is depreciated at a rate of 10% yearly, and the ultimate scrap value is Rs. 6561. The initial price of the machine is Rs. 10,000. ### Step-by-Step Solution: 1. **Understand the Depreciation Formula**: The formula for depreciation can be derived from the compound interest formula: \[ \text{Final Price} = \text{Initial Price} \times \left(1 - \frac{\text{Rate}}{100}\right)^{\text{Time}} \] Here, the rate of depreciation is 10%, so we will use \(1 - \frac{10}{100} = 0.9\). 2. **Identify the Given Values**: - Initial Price (P) = Rs. 10,000 - Final Price (S) = Rs. 6,561 - Rate of Depreciation = 10% (which we will use as 0.9 in the formula) 3. **Set Up the Equation**: Plugging the values into the formula: \[ 6561 = 10000 \times (0.9)^t \] 4. **Rearrange the Equation**: To isolate \((0.9)^t\), divide both sides by 10,000: \[ \frac{6561}{10000} = (0.9)^t \] This simplifies to: \[ 0.6561 = (0.9)^t \] 5. **Express 6561 and 10000 in Powers**: Notice that: \[ 6561 = 9^4 \quad \text{and} \quad 10000 = 10^4 \] Therefore, we can rewrite the equation as: \[ \frac{9^4}{10^4} = (0.9)^t \] Which can be expressed as: \[ \left(\frac{9}{10}\right)^4 = (0.9)^t \] 6. **Equate the Exponents**: Since the bases are the same, we can equate the exponents: \[ 4 = t \] 7. **Conclusion**: The effective life of the machine is \(t = 4\) years. ### Final Answer: The effective life of the machine is **4 years**.
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