Question

The value of machine,
purchased two year ago,
depreciates at the annual rate
of 10% If its present value is
797200, Find: its value when it
was purchased?​

Answer 1

Answer:

Rs.9,84,197.53

Step-by-step explanation:

DEPRECIATION RATE = 10%

PRESENT VALUE OF MACHINE= Rs.7,97,200

LET THE ORIGINAL VALUE OF IT BE Rs. x

A.T.Q

$x {(1 - \frac{10}{100}) }^{2} = 797200 \\ ⇒x \times \frac{9}{10} \times \frac{9}{10} = 797200 \\ ⇒x = \frac{797200 \times 10 \times 10}{9 \times 9} \\ ⇒x = rs.984197.53(approx.)$

✓VALUE ON THE DATE OF PURCHASE IS Rs.9,84,197.53

Answer 2

Correct question :

The value of machine, purchased two year ago, depreciates at the annual rate of 10% If its present value is Rs 97200, Find: its value when it was purchased?

Given :

depreciates at the annual rate of 10% If its present value is Rs 97200

To find :

1)The value of machine, purchased two year ago

2)its value when it was purchased?

Solution :

1) value after 2 year = P(1 - r/100)^n

= 97200(1 - 10/100)²

= 97200 x (9/10)²

= 78732

2) present value = value of 2 years before

A = p(1 - r/100)^n

97200 = p(1 -10/100)²

= p(9/100)²

p = 97200 x (10/9)²

p = 120000

=> The value of machine is 78732 purchased two year ago and its value when it was purchased is 120000