Present value of the machine = Rs 1,67,000

Rate of depreciation = 10 % Per annum

Time (n) = 2 years

**For 1 year depreciation amount = \(\frac{162000\times1\times10}{100}\)**

= Rs 16,200

Worth of the machine after one year = Worth of Machine – Depreciation

= 1,67,000 – 16,200

= 1,45,800

**Depreciation of the machine for 2nd year = 145800 x 1 x \(\frac{10}{100}\)**

= 14580

Worth of the machine after 2 years = 1,45,800 – 14,580

= 1,31,220

**∴ Worth of the machine after 2 years = Rs 1,31,220**