The value of a machine depreciates at the rate of 10% every year. It w

1.	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 8748, its purchase price was (a) Rs 10000 (b) Rs 11372 (c) Rs 12000 (d) Rs 12500
Answer» (c) Rs 12000 Let the purchase price of the machine be Rs x. Then, 8748 = x\(\big(1-\frac{10}{100}\big)^3\) = x x \(\frac{9}{10}\) x \(\frac{9}{10}\) x \(\frac{9}{10}\) \(\Rightarrow\)x = \(\frac{8748\times1000}{729}\) = Rs 12000.

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 8748, its purchase price was (a) Rs 10000 (b) Rs 11372 (c) Rs 12000 (d) Rs 12500

Answer»

(c) Rs 12000

Let the purchase price of the machine be Rs x.

Then, 8748 = x\(\big(1-\frac{10}{100}\big)^3\) = x x \(\frac{9}{10}\) x \(\frac{9}{10}\) x \(\frac{9}{10}\)

\(\Rightarrow\)x = \(\frac{8748\times1000}{729}\) = Rs 12000.