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What will be the respective ratio of the present value and depreciated value after two years of a machine if its value depreciates at 25% per annum ?
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Explanation:
Present price of machine
= Rs. x (let)
Price of machine after two years
= P (1−R\100)T
= x (1−25\100)2
= x×(3\4)^2=Rs.9x\16
∴Required ratio = x:9x\16
= 16 : 9