Question 25
Commercial ArithmeticA machine valued at ₦20,000 depreciates by 10% every year. What will be the value of the machine at the end of two years?
- A.₦16,200
- B.₦14,200
- C.₦12,000
- D.₦8,000
Show the answer and explanation
Answer: A (₦16,200)
Explanation
Each year the value is multiplied by 0.9: 20,000 × 0.9 × 0.9 = ₦16,200.