Question : The value of a machine is 6,250. It decreases by 10% during the first year, 20% during the second year and 30% during the third year. What will be the value of the machine after 3 years?
Option 1: 2,650
Option 2: 3,050
Option 3: 3,150
Option 4: 3,510
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Correct Answer: 3,150
Solution : Current value = 6250 Value after 1 st year (decrement of 10%) = 6250 – $\frac{10}{100}$ × 6250 = 6250 – 625 = 5625 Value after 2 nd year (decrement of 20%) = 5625 – $\frac{20}{100}$ × 5625 = 5625 – 1125 = 4500 Value after 3 rd year (decrement of 30%) = 4500 – $\frac{30}{100}$ × 4500 = 4500 – 1350 = 3150 Hence, the correct answer is 3,150.
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