Question 63

The price of a machine got depreciated by 50% in the 1st year, $$33\frac{1}{3}\%$$ in the 2nd year and 25% in the 3rd year. Overall, by how much has the machine depreciated?

Solution

let's assume the initial price be 100

After 3 years the price of machine = 100 of (100-50)% of (100-33.33)% of (100-25)%

= 100 of 50% of 66.67% of 75%

= $$100\times\ \frac{1}{2}\times\frac{2}{3}\times\frac{3}{4}$$

= 25

price of machine depreciated in three years = 100-25 = 75

so the percentage change from initial to final = $$\frac{75\times\ 100}{100}$$ = 75%

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