Question

The value of a refrigerator which was purchased 2 years ago, depreciates at 12% per annum. If its present value is Rs. 9680, for how much was it purchased?

Answer 1

Given, 

Present value of refrigerator = Rs. 9680 

Rate of depreciation = 12% 

Let price of it 2 years ago = Rs.X 

So,

\(=x({1}-\frac{12}{100})({1}-\frac{12}{100})\) = 9680

\(=x\times\frac{22}{25}\times\frac{22}{25}\) = 9680

\(= x =\frac{(9680 \times 25 \times 25)}{22\times22}\) = 12500

Hence, 

Price of refrigerator 2 years ago was = Rs.12500