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Q: The value of a machine depreciates at the rate of 10% every year. It was purchased 3 years ago. If its present value is Rs. 8,748, its purchase price was ?

  • 1
    Rs.14,000
  • 2
    Rs.12,000
  • 3
    Rs. 12,800
  • 4
    Rs. 15,000
  • Show Answer
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Answer : 2. "Rs.12,000"
Explanation :

Answer: B) Rs.12,000 Explanation: We have P = 8748, R = -10 and n = 3Therefore, the purchase price of the machine= P1+R100n= 87481-101003= 8748 x (100/90) x (100/90) x (100/90)= 12,000.   Therefore, the purchase price of the machine was Rs. 12,000.

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