Answer :

Principal = 250000/-, Rate (decrement) = 10% (p.c.p.a), Duration (n) = 2 years

^{2}

^{2}

A = 250000 (1-0.1)^{2}

A = 250000 (0.9)^{2}

A = 250000 (0.81)

∴A= 202500/-

∵ C.I. = A - P

∴ Depreciation in Price (C.I.) = 202500 – 250000

Depreciation in Price (C.I.) = -47500/-

(-) sign denotes the depreciation in amount.

∴ Depreciation in Price of the machine after 2 years will be 47500/- .

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