Question

A machine was purchased 3 years ago. Its value depreciates at the rate of 10% per
annum. If its present value is Rs.94770, for how much was it purchased?​

Answer 1

Answer:

Step-by-step explanation:

Because it depreciated from a higher price,

Let principal be a,

Dep = P ( 1- R%/100)^t

94770 = a ( 1-10/100 )^3

94770 = a x 90/100 x 90/100 x 90/100

94770 = a x 9/10 x 9/10 x 9/10

94770 = a x 729/1000

94770 x 1000 = 729a

94770000 = 729a

94770000/729 = a

Rs 1,30,000 = a