The value of a machine depreciates by 5% every year. If

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The value of a machine depreciates by 5% every year. If its present value is ₹ 2,00,000, its value after 2 years will be

1. ₹ 1,80,500
2. ₹ 1,99,000
3. ₹ 1,80,000
4. ₹ 2,10,000

Correct Option: A

Using Rule 18,

A = P		1 -	R		^T
			100

= 200000		1 -	5		²
			100

= 200000 ×	19	×	19	= ₹ 180500
	20		20