A machine depreciates at the rate of 7% of its value at the beginning of a year. If the
machine was purchased for Rs. 8500, what is the minimum number of complete year at the
end of which the worth of the machine will be less than or equal to half of its original cost
price ?
Answers
Answered by
0
Explanation:
We know that
Final price = initial price(1+
100
rate
)
time
Here the final price = Rs. 8784, time =3 yrs, rate =−10%p.a.
The rate is negative since the price is depriciating.
Let the initial price = Rs. x.
∴x×(1−
100
10
)
3
=8748
⇒x×
10
9
×
10
9
×
10
9
=8748
⇒x=8748×
9
10
×
9
10
×
9
10
= Rs. 12000
So, the price of the machine 3 years back = Rs. 12000.
Ans- Option C.
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