Multiple Choice Questions on Depreciation applicable to an equipment is 25 The value of the equipment after 4 years from now will........... for Mathematics - All Exams Preparation

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Multiple Choice Questions

Depreciation applicable to an equipment is 25 The value of the equipment after 4 years from now will...........

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    Depreciation applicable to an equipment is 25.%. The value of the equipment after 4 years from now will be less by(in percentage)?

    68.36%

    Correct Answer

    68.63%

    Incorrect Answer

    68.33%

    Incorrect Answer

    68.66%

    Incorrect Answer
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    Explanation:

    Let present value = 100 lit
    Value after 4 years = [100 x (1 - 25/100)4
    = 100 x 3 /4 x 3 /4 x 3 /4 x 3 /4
    = 100 × (81/256) = 31.64
    Reduction in value = 100 – 31.64 = 68.36

    By: Amit Kumar
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