A machine valued at N20,000 depreciates by 10% every year. What will be the value of the machine at the end of two years?

Answer Details

At the end of the first year, the value of the machine will be 90% of N20,000 = N18,000. At the end of the second year, the value of the machine will be 90% of N18,000 = N16,200. Therefore, the value of the machine at the end of two years will be N16,200. So the correct option is: - N16,200