Lesson 3 · Depreciation

Depreciation

MathematicsSubject
8 minEstimated read
1If the initial price of a good is Rs. P and the rate of depreciation is R% p.a., write the formula for the price of the good after T years.
2In \( V_T = V_0\left(1 - \frac{R}{100}\right)^T \), what does 'R' represent?
3Ram sold a watch which cost Rs. 5,000 after 1 year at 7% depreciation. What is the depreciated amount?
4A motorcycle is sold for Rs. 57,000 after 1 year of depreciation at 5% p.a. At what price was it bought?
5What will be the price of a cupboard costing Rs. 16,800 after 2 years at 15% depreciation p.a.?
6The present price of a 125 c.c. motorcycle made in India is Rs. 2,50,000. If it depreciates at 4% p.a., what will it be worth after 3 years of use?
7Sameer bought a mobile phone for Rs. 30,000. Because of a household problem he had to sell it after 2 years at a 30% rate of depreciation. Find the depreciated amount.
8A mathematics teacher bought a laptop for Rs. 96,000 for online classes. It depreciates at 15% every year. If he sells it after 3 years of use, how much has it depreciated?
93 years ago, a plot of 4 ropani of land in a hilly region was bought for Rs. 12,50,000. It can now be sold for Rs. 1,60,000 per ropani. By what percent per annum has the land depreciated?
10A man bought a watch for Rs. 5,000 and sold it after 3 years for only Rs. 625. Find the annual rate of depreciation.
11A press machine bought some years ago for Rs. 4,00,000 has fallen to Rs. 1,96,000, losing 30% of its value each year. How many years ago was it bought?
12A car costs Rs. 8,00,000. If its price falls by 10% every year, in how many years will it be Rs. 5,83,200?
13After the American dollar lost value at 5% p.a. for 2 years, $1 = Rs. 125 now. How many Nepali rupees was $1 worth 2 years ago?
143 years ago, a group of young people back from foreign employment started a cow farm with Rs. 2,80,000. Because of political instability the farm depreciates at 5% p.a. What is it worth now?
15A photocopy machine costs Rs. 5,00,000 now. If it depreciates by 15% in the first year, 10% in the second and 5% in the third, what will it be worth in 3 years?
16A lamination machine is sold for Rs. 24,168 after depreciating by 4% in the first year and 5% in the second. Find its price 2 years ago.
17An entrepreneur bought a heavy truck for Rs. 48,00,000. He earned Rs. 6,80,000 in 2 years. If it depreciates by 10% every year and is sold after 2 years, find his profit or loss.
18A bus owner bought a bus for Rs. 16,00,000 and ran it on the Kathmandu to Baglung route for 3 years. He earned only Rs. 5,10,000. If its value falls by 5% every year and he sells it after 3 years, find his profit or loss.
19The share price of a finance company listed in the Nepal share market has fallen by 10% a year for 2 years. Your neighbour sold his shares for Rs. 28,350. How many shares had he bought 2 years ago at Rs. 100 per share?
20The share price of a hydropower company is falling by 10% p.a. If Sashi sells all his shares now he gets Rs. 7,10,775. (a) What were his shares worth 2 years ago? (b) If he bought them in the IPO at Rs. 100 per share, how many shares did he buy?
21At a certain annual rate of depreciation, a good will be worth Rs. 10,240 in 2 years and Rs. 8,192 in 3 years. (a) Find the rate of depreciation. (b) What was the initial price?
22At a certain yearly rate of depreciation, an article will be worth Rs. 5,41,500 in 2 years and Rs. 5,14,425 in 3 years. (a) What is the rate? (b) What was the initial price?
23What is the difference between the depreciated value and the amount depreciated? Find both for an item worth Rs. 10,000 depreciating at 10% p.a. for 2 years.
24Why does the amount lost each year get smaller under compound depreciation?
25One machine depreciates 10% in the first year and 20% in the second. Another depreciates 20% in the first year and 10% in the second. If both start at the same price, which is worth more after 2 years?
26Is it true that an item depreciating at 10% p.a. compound becomes worth nothing after 10 years? Give a reason.