A machine bought for Rs. 250,000 depreciates at 10% per annum on its reducing value. What is its value after 3 years?
Correct answer D. Rs. 182,250
Explanation
Value = 250000 × (0.9)³ = 250000 × 0.729 = Rs. 182,250. Year by year the value falls 250000 → 225000 → 202500 → 182250.
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