Answer to Question #217131 in Math for Ankur anegi

Question

) A machine depreciates at the rate of 8% for the first two years, at 10% for next 3

years and then at the rate of 15% per annum. Find the value of the machine at the end

of 10 years, if the value of the machine is Rs. 1,00,000 initially. Find also the average

rate of depreciation.

(c) A house is sold for Rs. 500000 down and 10 semi-annual payments of Rs. 50000

each, the first due 3 years hence. Find the cash price of the house if money is worth

20% compounded semi-annually.

(d) A machine costs a company Rs. 52,000 and its effective life is estimated to be 12

years. A sinking fund is created for replacing the machine by a new model at the end

of its life time, when its scrap realizes a sum of Rs. 5,000 only. The price of new

model is estimated to be 25% higher than the price of the present one. Find what

amount should be set aside at the end of each year, out of the profits, for the sinking

fund, if it accumulates at 10% effective.