The value of a machine depreciates every year by 5%. If the present value of the machine is Rs. 80,000, what will be its value after 2 years?

Correct option is A

Given:
Value of bike depreciates every year = 5%
Present value of bike = Rs80000
Formula Used:
Successive percentage - x - y +$$\frac{xy}{100}$$​​
(-) negative indicate discount/decrease
Solution:
Required percentage = -5 -5 + $$\frac{5\times5}{100}$$​​
=-10+0.25
=9.75%
Present value = 80000 - 9.75% of 80000
= 80000- 7800
= 72200
Alternate Method:
Present value = $$\text{Original Value} \times \left(\frac{100 - r}{100}\right)^n$$​
n=2 years

Present value $$= 80000 \times \frac{95}{100} \times \frac{95}{100}= 72200$$​​