What I tried to do is:
Let V = 100
X = 100
Y = 200
But finding the value of X and Y after a couple of years gets nasty:
So would you all just do the calculation or is there a faster way?
The original value of machine X is V dollars, while the original value of machine Y is 2V dollars. Both machines depreciate in value at a constant rate of 10 percent of their original value per year.
How to find:
The value of machine X after 3 years
The value of machine Y after 6 years
@skawal, If you understand the concept here, probably you don't need to memorize a formula ...
It's understood that every year some percent of the initial amount would be lost in depreciation ... we need to see how much would be the depreciated amount after 3 or 6 years ... in my second explanation above you can see the way it's derived ...
If let's say the qn stem was as follows:
The original value of machine X is V dollars, while the original value of machine Y is 2V dollars. Both machines depreciate in value at a rate of 10 percent of per year.
In such case, it would be the compound interest formula (with a -ve interest rate) ... then Dynamo's solution would've been correct ...
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