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
N14,200
C
N12,000
D
N8,000
Verified Correct Answer: A.
Step-by-Step Mathematical Solution
Since it depreciates by 10% At the end of first year, its value = 90% of 20000
= \(\frac{90}{100}\) x 20000 =18000
At the end of second year, its value = 90% of 18000
= \(\frac{90}{100}\) x 18000 = ₦16,200
Answer is A
Source: Myschool Past Questions Archive (Record #46998)