The value of a refrigerator which was purchased 2 years ago, depreciat

1.	The value of a refrigerator which was purchased 2 years ago, depreciates at 12% per annum. If its present value is Rs. 9680, for how much was it purchased?
Answer» Given details are, Present value of refrigerator is = Rs 9680 Depreciation rate is = 12% Let the price of refrigerator 2 years ago be = Rs x By using the formula, A = P (1 + R/100)ⁿ 9680 = x (1 – 12/100) (1 – 12/100) 9680 = x (88/100) (88/100) 9680 = x (0.88) (0.88) 9680 = 0.7744x x = 9680/0.7744 = 12500 ∴ The refrigerator was purchased for Rs 12500.

The value of a refrigerator which was purchased 2 years ago, depreciates at 12% per annum. If its present value is Rs. 9680, for how much was it purchased?

Answer»

Given details are,

Present value of refrigerator is = Rs 9680

Depreciation rate is = 12%

Let the price of refrigerator 2 years ago be = Rs x

By using the formula,

A = P (1 + R/100)ⁿ

9680 = x (1 – 12/100) (1 – 12/100)

9680 = x (88/100) (88/100)

9680 = x (0.88) (0.88)

9680 = 0.7744x

x = 9680/0.7744

= 12500

∴ The refrigerator was purchased for Rs 12500.