A machine valued at N20,000 depreciates by 10% every year. What will be the value of the machine at the end of two years?
A
N16,200
B
N1,4,200
C
12,000
D
8000.
Verified Correct Answer: A.
Step-by-Step Mathematical Solution
D = P(I - \(\frac{R}{100}\))n where P = N20,000; R = 10%, n = 2
D = 20,000(I - \(\frac{10}{100}\))2
= 20000(0.9)2
20,000 x 0.81 = N16,200
Source: Myschool Past Questions Archive (Record #36176)