The value of a machine depreciates at the rate of 10% per annum. It wa

1.	The value of a machine depreciates at the rate of 10% per annum. It was purchased 3 years ago. If its present value is Rs. 43740, find its purchase price
Answer» Given, Depreciation rate of machine = 10% p.a Present value of machine = Rs.43740 Let its purchase price 3 years ago = Rs. x So, \(=x({1}+\frac{10}{100})({1}+\frac{10}{100})({1}+\frac{10}{100})\) = 43740 \(x\times\frac{11}{10}\times\frac{11}{10}\times\frac{11}{10}\) = 43740 \(= x =\frac{43740 \times 10 \times 10 \times 10}{11 \times 11 \times 11}\) = 60000 Hence, Purchase price of machine was = Rs.60000

The value of a machine depreciates at the rate of 10% per annum. It was purchased 3 years ago. If its present value is Rs. 43740, find its purchase price

Answer»

Given,

Depreciation rate of machine = 10% p.a

Present value of machine = Rs.43740

Let its purchase price 3 years ago = Rs. x

So,

\(=x({1}+\frac{10}{100})({1}+\frac{10}{100})({1}+\frac{10}{100})\) = 43740

\(x\times\frac{11}{10}\times\frac{11}{10}\times\frac{11}{10}\) = 43740

\(= x =\frac{43740 \times 10 \times 10 \times 10}{11 \times 11 \times 11}\) = 60000

Hence,

Purchase price of machine was = Rs.60000