Question

The value of a machine depreciates at the rate of 10% per annum . It was purchased 3 years ago.If its present value is ₹43740,at what price was it purchased

Answer 1

may this helps you ..

Answer 2

Dear Student,

◆ Answer -

x = ₹ 60000

● Explanation -

Let x be purchase price of the machine.

Given that value of a machine depreciates at the rate of 10% per annum -

Value = x (1 - r)^t

43740 = x (1 - 10/100)^3

43740 = x × 0.9^3

43740 = x × 0.729

x = 43740 / 0.729

x = ₹ 60000

Hence, the machine was purchased at ₹ 60000.

Thanks dear. Hope this helps you...