Question

During every financial year,the value of a machine depreciate by 12%.find the original cost of a machine which depreciate by rupees 2640 during the second financial year of it's purchase

Answer 1

Answer:

The original cost of a machine is Rs. 25,000.

Step-by-step explanation:

It is given that during every financial year,the value of a machine depreciate by 12%.

Let the original cost of a machine be x.

In first year the machine depreciate by 12%. So, the value of machine after 1 year is

$x(1-\frac{12}{100})=x(1-0.12)=0.88x$

The value of machine after 1 year is 0.88x.

In second year the machine depreciate by 12%.

$D=0.88x\times \frac{12}{100}$

$D=0.1056x$

The machine depreciate by rupees 2640 during the second financial year of it's purchase.

$2640=0.1056x$

$\frac{2640}{0.1056}=x$

$25000=x$

Therefore the original cost of a machine is Rs. 25,000.