Question

The value of a machine is depreciated at 10% p.a. and is Rs 29151.90 after 2 years. What was its original price?

Answer 1

Answer:

We know that

Final price = initial price(1+100rate)time

Here the final price = Rs. 8784, time =3 yrs, rate =−10%p.a.

The rate is negative since the price is depriciating.

Let the initial price = Rs. x.

∴x×(1−10010)3=8748

⇒x×109×109×109=8748

⇒x=8748×910×910×910= Rs. 12000

So, the price of the machine 3 years back = Rs. 12000.