# The value of a machine depreciate each year by 5% of its value at the beginning of that year. If its value when new on first 1968 was 10250,what was its value in January 1978?

Jun 21, 2018

Depreciated value on January 1978 is $6137$ unit

#### Explanation:

Initial value is $I = 10250$, depreciation rate is

r=5%=5/100=0.05; t =1978-1968=10 years

Depreciated value after $10$ years is $D = I {\left(1 - r\right)}^{t}$

$\therefore D = 10250 {\left(1 - 0.05\right)}^{10} \approx 6137.05 \left(2 \mathrm{dp}\right)$

Depreciated value on January 1978 is $6137$ [Ans]