A machine valued at N20,000 depreciates by 10% every year. What will be the value of the machine at the end of two years?
-
N16,200
- N14,200
- N12,000
- N8,000
The correct answer is: A
Explanation
Since it depreciates by 10% At the end of first year, its value = 90% of 20000
= \(\frac{90}{100}\) x 20000 =18000
At the end of second year, its value = 90% of 18000
= \(\frac{90}{100}\) x 18000 = ₦16,200
Answer is A
There is an explanation video available .