Question

2. The value of a machine depreciates by 5% every year. It is given that the initial value of the machine is RM100 000.

(a) Express its value, in RM, after n years.

(b) Hence, find its value after 10 years to the nearest ringgit.​

Answer 1

Explanation:

Depreciation means wearing and tearing in the value of an asset over the years

(a) Given:

p = initial value of an asset

i% = depreciation per year

n = number of years

Depreciation after n years (d) =
`p(1-(1)/(100) )^(n)`

Value of machine after n years = p-d

(b) Given:

p = RM100000

i% = 5

n = 10
Depreciation after 10 years =
`100000(1-(5)/(100) )^(10) = 59873.69392`

Value of machine after 10 years = p-d = RM100000 - RM59873.69392 = RM 40123.30608

Value of machine after 10 years to nearest ringgit = RM40123