Question 14
Commercial ArithmeticA generator costs ₦82,000.00. It depreciates by 10% the first year and 5% the second year. Find the value after the second year
- A.₦78,300.00
- B.₦71,100.00
- C.₦73,800.00
- D.₦70,110.00
Show the answer and explanation
Answer: D (₦70,110.00)
Explanation
82 000 × 0.9 = 73 800 after one year, then 73 800 × 0.95 = ₦70,110.