Question

the value of a machine depreciates @ 10% per annum it was purchased 3 years ago if its present value is 291600 for how much was it purchased​

Answer 1

Answer:

Rs. 400000

Step-by-step explanation:

Depreciation means reduce in price or value.

10% depreciation every year means, Rs. 100 worth machinery will become Rs. 90 end of the year.  

In other words, Rs. X will become 90*X/100 end of the year. Here is X is original price.

So 3 years after it will be X*90*90*90/(100*100*100)

So Y = X*90*90*90/(100*100*100)

Y = Current price = Rs. 291600

X = Y*100*100*100/(90*90*90)

Substituting the value in the equation, we get

= 291600*90*90*90/(100*100*100)

= Rs. 400000