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
- N1,4,200
- 12,000
- 8000.
The correct answer is: A
Explanation
D = P(I - \(\frac{R}{100}\))n where P = N20,000; R = 10%, n = 2D = 20,000(I - \(\frac{10}{100}\))2
= 20000(0.9)2
20,000 x 0.81 = N16,200