The cost of a machine decreases by 10% per year. If its present cost is ₹ 24,000: find its value at the beginning of 3rd year.

Given:

The cost of a machine decreases by = 10%

The present cost of a machine = 24,000

Decrease of value at the beginning of 2nd year = 10% of previous value

= $\dfrac{10}{100} \times 24,000$

= $\dfrac{1}{10} \times 24,000$

= $\dfrac{24,000}{10}$

= $2,400$

Value at the beginning of 2nd year = Previous value - Decrease in value

= $24,000 - 2,400$

= $21,600$

Decrease of value at the beginning of 3rd year = 10% of previous value

= $\dfrac{10}{100} \times 21,600$

= $\dfrac{1}{10} \times 21,600$

= $\dfrac{21,600}{10}$

= $2,160$

Value at the beginning of 3rd year = Previous value - Decrease in value

= $21,600 - 2,160$

= $19,440$

Hence, the value at the beginning of 3rd year = 19,440