Question -
Answer -
Given: A piece ofequipment cost a certain factory is ₹ 600,000
We need to find thevalue of the equipment at the end of 10 years.
The price of equipmentdepreciates 15%, 13.5%, 12% in 1st, 2nd, 3rd yearand so on.
So the A.P. will be15, 13.5, 12,…………… up to 10 terms
Here, a = 15, d = 13.5– 15 = –1.5, n = 10
By using the formula,
Sn =n/2 [2a + (n – 1)d]
S10 =10/2 [2(15) + (10-1) (-1.5)]
= 5 [30 + 9(-1.5)]
= 5 [30 – 13.5]
= 5 [16.5]
= 82.5
The value of equipmentat the end of 10 years is = [100 – Depreciation %]/100 × cost
= [100 – 82.5]/100 ×600000
= 175/10 × 6000
= 175 × 600
= 105000
∴ The value ofequipment at the end of 10 years is ₹ 105000.