The value of a plant depreciates by 10 % annually. If the present value of the plant is Rs. 100000, then what will be its value after 2 years?

A. Rs. 8000
B. Rs 10000
C. Rs. 18000
D. Rs. 81000

Explanation:

Value after 2 Years = Rs[100000 × (1 – 10/100)2]

= Rs (100000 × 0.9 × 0.9) = Rs 81000