Answer :
Answer:
7
Step-by-step explanation:
Let's break this down step by step:
1. The machine depreciates by 8% of its value at the beginning of each year.
2. The machine was purchased for Rs. 15,000.
3. We want to find the minimum number of years it takes for the machine's value to not exceed 2/5th of its original value, which is:
Rs. 15,000 x (2/5) = Rs. 6,000
1. Let's calculate the depreciation for the first year:
Rs. 15,000 x 0.08 = Rs. 1,200
Value after 1 year = Rs. 15,000 - Rs. 1,200 = Rs. 13,800
1. Since the machine's value is still above Rs. 6,000, we need to calculate the depreciation for the next year:
Rs. 13,800 x 0.08 = Rs. 1,104
Value after 2 years = Rs. 13,800 - Rs. 1,104 = Rs. 12,696
1. We can continue this process until the machine's value falls below Rs. 6,000:
Year 3:
Rs. 12,696 x 0.08 = Rs. 1,015.68
Value after 3 years = Rs. 12,696 - Rs. 1,015.68 = Rs. 11,680.32
Year 4:
Rs. 11,680.32 x 0.08 = Rs. 935.23
Value after 4 years = Rs. 11,680.32 - Rs. 935.23 = Rs. 10,745.09
Year 5:
Rs. 10,745.09 x 0.08 = Rs. 859.61
Value after 5 years = Rs. 10,745.09 - Rs. 859.61 = Rs. 9,885.48
Year 6:
Rs. 9,885.48 x 0.08 = Rs. 791.24
Value after 6 years = Rs. 9,885.48 - Rs. 791.24 = Rs. 9,094.24
Year 7:
Rs. 9,094.24 x 0.08 = Rs. 727.54
Value after 7 years = Rs. 9,094.24 - Rs. 727.54 = Rs. 8,366.70
Since the machine's value after 7 years (Rs. 8,366.70) is less than 2/5th of its original value (Rs. 6,000), the minimum number of years required is 7.