Question on: WAEC Mathematics - 2006

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.
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Correct Option: A

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

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