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Worked Examples · Example 10

Q.The value of a machine depreciates continuously at a rate proportional to its value. It was purchased for ₹1,00,000\text{₹}1{,}00{,}000 and after 22 years its value is ₹64,000\text{₹}64{,}000. Find its value after 44 years.

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Let V(t)V(t) be the value after tt years. Depreciation at a rate proportional to value gives

dVdt=kV⟹V=V0 ekt,V0=1,00,000,\frac{dV}{dt} = kV \quad\Longrightarrow\quad V = V_0\,e^{kt}, \qquad V_0 = 1{,}00{,}000,

with k<0k<0 (value falling).

Use the 2-year reading: V(2)=64,000V(2) = 64{,}000, so

1,00,000 e2k=64,000  ⟹  e2k=64,0001,00,000=0.64.1{,}00{,}000\,e^{2k} = 64{,}000 \;\Longrightarrow\; e^{2k} = \frac{64{,}000}{1{,}00{,}000} = 0.64.

Value after 4 years: 4=2×24 = 2\times 2, so

V(4)=V0 e4k=V0(e2k)2=1,00,000×(0.64)2=1,00,000×0.4096=40,960.V(4) = V_0\,e^{4k} = V_0\left(e^{2k}\right)^{2} = 1{,}00{,}000\times (0.64)^{2} = 1{,}00{,}000\times 0.4096 = 40{,}960. …

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