A machine valued at N20,000 depreciates by 10% every year. What will be the value of the machine at the end of two years?

A.

N16,200

B.

N14,200

C.

N12,000

D.

N8,000

Correct answer is A

Since it depreciates by 10% At the end of first year, its value = 90% of 20000

  = \(\frac{90}{100}\) x 20000 =18000

  At the end of second year, its value = 90% of 18000

  = \(\frac{90}{100}\) x 18000 = ₦16,200

  Answer is A