Question

There is a decrease of 10% yearly on an article. If this article was bought 3 years ago and present cost is Rs. 5,832 then what was the cost of article at buying time?
A.Rs. 7,200
B.Rs. 7,862
C.Rs. 8,000
D.Rs. 8,500

Answer 1

Answer:

Option c) 8000

Step-by-step explanation:

Let the article be bought at Rs. x

⇒ Depreciation in Year 1 = x - 10% of x

⇒ Depreciation in Year 1 = x - x / 10 = 0.9 x

⇒ Depreciation in Year 2 = 0.9x - 10% of 0.9x

⇒ Depreciation in Year 2 = 0.9x - 0.09x = 0.81x

⇒ Depreciation in Year 3 = 0.81x - 10% of 0.81

⇒ Depreciation in Year 3 = 0.81x - 0.081x = 0.729x

Hence value of article in the third year is Rs. 5832

⇒ 0.729x = 5832

⇒ x = 5832 / 0.729

⇒ x = 8000

Hence the original price was Rs. 8000