Question

(b) The price of a machine decreases by
10% every year. If the present price of
the machine is 43,740, what was the
price of the machine 3 years ago ?​

Answer 1

Step-by-step explanation:

Present value of machine (A)=Rs.43740

Value depreciates by (R)=10% per annum

Time Period (n)=3 years.

As the value is depreciating, therefore will we use:

A=P(1−R100)n

43740=P(1−10100)3

43740=P(1−110)3

43740=P(10−110)3

43740=P(910)3

P=43740×(109)3

P=43740×1000729

P=1000×60

P=Rs.60000

Hence, the purchase price of the machine 3 years ago would be Rs.60000.