Mathematics for FinancePYQ May 20Question 1303 of 512
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A machine depreciates at 10%\displaystyle 10\% of its value at the beginning of a year. The cost and scrap value realized at the time of sale being 23,240\displaystyle 23,240 and 9,000\displaystyle 9,000 respectively. For how many years the machine was put to use?

Options

A7\displaystyle 7 years
B8\displaystyle 8 years
C9\displaystyle 9 years
D10\displaystyle 10 years
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Correct Answer

✅ Option c — 9\displaystyle 9 years

All Options:

  • A7\displaystyle 7 years
  • B8\displaystyle 8 years
  • C9\displaystyle 9 years
  • D10\displaystyle 10 years

Detailed Solution & Explanation

**Derivation of Machine Use Period** Given: - Cost of Machine (V0\displaystyle V_0) = Rs. 23,240\displaystyle \text{Rs. }23,240 - Scrap Value (Vt\displaystyle V_t) = Rs. 9,000\displaystyle \text{Rs. }9,000 - Rate of Depreciation (d\displaystyle d) = 10%\displaystyle 10\% per annum **Step 1: Set up the depreciation equation** Vt=V0(1−d)tV_t = V_0(1 - d)^t 9000=23240(1−0.10)t9000 = 23240(1 - 0.10)^t 900023240=(0.9)t\frac{9000}{23240} = (0.9)^t 0.387263=(0.9)t0.387263 = (0.9)^t **Step 2: Solve for t\displaystyle t by evaluating powers of 0.9\displaystyle 0.9** - (0.9)8≈0.430467\displaystyle (0.9)^8 \approx 0.430467 - (0.9)9≈0.387420\displaystyle (0.9)^9 \approx 0.387420 Since (0.9)9=0.387420≈0.387263\displaystyle (0.9)^9 = 0.387420 \approx 0.387263, the period is approximately 9\displaystyle 9 years. Hence, **Option C** is the correct answer.

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