A machine costing Rs 50000 depreciates at a constant rate of 8% p.a. If the estimated useful life of the machine is 10 years, determine its scrap value (Use log table)

₹21725

The correct answer is option (1) :₹21725

$P= ₹50000$

$i=\frac{8}{100}= 0.08$

$n= 10\, years $

So, $S= P(1-i)^n$

$= 50000(1-0.08)^{10}$

$= 50000(0.92)^{10}$

Let $ x= (0.92)^{10}$

$log\, x = 10log (0.92)$

$= 10×T.9638$

$= 10 ×(-0.0362)$

$= -0.362$

$= T.638$

x= antilog T.638

$= 0.4345$

$∴S= 50000×0.4345= 21725$

Hence, scrap value $= ₹21725$