Question

the value of machine depreciate at rate of 10% per annum . it was purchased 3 years ago . if it's present value is rupees 43740 ,at what price was it purchased
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Answer 1

Answer:

The machine was purchased for ₹60,000.

Step-by-step explanation:

Given:

• Present value = Amount (A) = 43740

• Rate of depreciation = R = 10%

• Number of years ago it was purchased = n = 3 years

To find:

Price at which it was purchased = Principal (P)

Method to find:

In case of depreciation, the formula for finding the amount (compounded annually) is:

A = P(1 - R/100)ⁿ

⇒ 43740 = P(1 - 10/100)³

⇒ 43740 = P(90/100)² = P(9/10)³

⇒ 43740 = 729P/1000

⇒ P = (43740 * 1000)/729

⇒ P = ₹60,000

Hope it helps!