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A machine valued at N20,000 depreciates by 10% every year. What will be the value...

Mathematics
WAEC 2006

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?
  • A. N16,200
  • B. N1,4,200
  • C. 12,000
  • D. 8000.
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Correct Answer: Option A
Explanation
D = P(I - \(\frac{R}{100}\))n where P = N20,000; R = 10%, n = 2

D = 20,000(I - \(\frac{10}{100}\))2

= 20000(0.9)2

20,000 x 0.81 = N16,200

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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
Join your school's WhatsApp group
NECO June/July 2024 - Get offline past questions & answers - Download objective & theory, all in one app 48789
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
Join your school's WhatsApp group
NECO June/July 2024 - Get offline past questions & answers - Download objective & theory, all in one app 48789