A machine was purchased for Rs 6,00,000

MATHEMATICS · Multi-part · AoPS · Mathematics · Exponents and Logarithms · Exponents and Logarithms

Problem

A machine was purchased for Rs 6,00,000. At the end of every completed year its value falls by 15 % of the value it had at the beginning of that year. (i) Derive a general expression for the value of the machine at the end of the nthn^{\text{th}} year. (ii) Calculate the book value of the machine at the end of 8 years, correct to the nearest rupee. (iii) Find the total amount of depreciation suffered by the machine during the first 8 years. (iv) Assuming the same rate of depreciation continues, determine the limiting value of the machine as time tends to infinity.

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