A piece of equipment cost a certain factory rupee symbol 6 lakh is it depreciates in value 15% the first year 13.5% the next year 12% the third year and so on what will be its value at the end of 10 years all percentage applying to the original cost

Solution (By Examveda Team)

Depreciation after 1st year =600,000 × (15/100) = Rs 90,000
Depreciation after 2nd year =600,000 × (13.5/100) = Rs 81,000
Depreciation after 10th year =600,000 × 1.5/100 = Rs 9,000
Total depreciation = 90000 + 81000 + 72000+ …+ 9000
Here a = 90000, d = 81000 – 90000 = – 9000, t₁₀ = 9000
Sum of n terms of AP is S_n = n/2 (a + l)
S₁₀ = 10/2 (90000 + 9000)
= 5 × 99000 = 495000
Value at the end of 10 years = Rs 600000 – Rs 495000 = Rs 1,05,000