The value of a machine, purchased 3 years ago, depreciates at the annual rate of 15%. If its present value is ₹51,20,000, find its value after 4 years.

Correct option is A

Given:

Present value of machine = ₹51,20,000

Depreciation = 15%

Time = 3 years

Formula Used:

Compounded depreciation = $$Original Value \left( 1 - \frac{r}{100}\right)^t$$​​

Solution:

Value of machine after 4 years =  $$51,20,000 \left( 1 - \frac{15}{100}\right)^4$$​​

= ₹26,72,672