1.

The cost of an article depreciates at 5% per annum. If it’s present cost is Rs. 15000, what will be average price of value of article a year ago and value of article after a year?1). Rs. 16789.52). Rs. 153453). Rs. 15750.44). Rs. 15019.73

Answer»

<P>Given,

Present COST of an article = Rs. 15000

Cost of an article after n years,

Amount = P[1 + (R/100)]n

Cost of an article n years ago,

Amount = P/(1 - R/100)n

Cost of article after a YEAR 

= 15000[1 + 5/100]

= 15000[95/100]

= 14250

Cost of an article before a year 

= 15000/[1 - 5/100]

= 15000/(95/100)

= 15789.47

Average PRICE of value of article a year ago and value of article after a year 

= (14250 + 15789.47)/2

= 15019.73


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