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3. The value of a machine, purchased two yearsago, depreciates at the annual rate of 10%. Ifits present value is 97,200, find :(i) its value after 2 years.(ii) its value when it was purchased. |
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Answer» Answer: I) 78732 ii) 117612 Step-by-step EXPLANATION: Year 1 - 97200 - 9720 = 87480 Year 2 - 87480 - 8748 = 78732 ii) PV = 97200 Year t-1 = 97200 + 9720 = 106920 Year t-2 = 106920 + 10692 = 117612 |
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