Solved IB Security Assistant Question
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Q · Compound IntetrestModerate · 45s
A machine costs ₹5,00,000 and depreciates at 10% p.a. compounded annually. Find its value after 2 years.
TopicCompound Intetrest
Question Typemultiple choice
DifficultyModerate
Marking+1 / −0.25
From TestChapter Test 1 (Chapter Test)
Test Duration30 min
Step-by-Step Solution
The complete worked solution.
Every step explained — no skipped algebra.
Value = 500000×(0.9)^2 = ₹405000; Depreciation = ₹95000.
Final Answer: Option A — ₹405000.00