The value of a machine purchased two years ago, depreciates at the annual rate of 10%. If its present value is ₹97200 then its value (in ₹) after 3 years from now is :
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 70858.80
The depreciation follows,
$FV=P×(1-r)^t$
$=97200×(1-0.10)^3$
$=70858.80$