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  1. The value of a machine depreciates 10% annually. If its present value is Rs. 4000. Its value 2 years later will be ?
    1. Rs. 3200
    2. Rs. 3240
    3. Rs. 3260
    4. Rs. 3280
Correct Option: B

Value of machine 2 years later = Rs. [ 4000 x {(1 - 10)/10)}2]
= Rs. (4000 x 9/10 x 9/10)
= Rs. 3240


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