Question

A machine was purchased two years ago its value depreciates at the rate of 10% per annum if its present value is rupees 648000 find price two years ago

Answer 1

The price of machine two years ago was 8,00,000 Rs.

Step-by-step explanation:

The present value of the machine = Rs. 6,48,000

depreciation rate per annum = 10%

Purchased time = 2 years ago

We will use the formula :

$A=P(\frac{1-r}{100})^t$

Where A = 648000

            P = ?

            r = 10/100

            t = 2 years

$648000=P(\frac{1-10}{100})^2$

$648000=P(1-0.10)^2$

648000 = 0.81P

P = $\frac{648000}{0.81}$

P = 8,00,000

The price of machine two years ago was 8,00,000 Rs.

Learn more about depreciation value : https://brainly.in/question/2662451

https://brainly.in/question/2005252