A machine depreciates at the rate of 10% of its value at the beginning of a year. If the present value of a machine is rs 4000, find its value after 3 years.

• 4916
• 3916
• none
• 2916

Explanation

P=Rs. 4000

r=10%

n=3 years

Now, as the value of the machine depreciated every year by 10%,

Hence, the value of the machine after 3 years is Rs. 2916.