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The value of a machine depreciates every year by 10%. If the present value of the machine is Rs.54000, what was its value last year?

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Let the value of the machine last year = Z 

∴ Present value of the machine = (100 – 10) % of Rs.Z 

⇒ 54000 = 90% of Z 

⇒ 54000 = Z x 90/100 

⇒ Z = 54000 x 100/90 

⇒ Z = 600 x 100 

⇒ Z = 60000

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