Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
696 views
in Compound Interest by (31.2k points)
closed by

The value of a machine depreciates at the rate of 10% per annum. It was purchased 3 years ago for Rs. 60000. What is the present value of the machine? 

A. Rs. 53640 

B. Rs. 51680 

C. Rs. 43740 

D. Rs. 43470

1 Answer

+1 vote
by (30.8k points)
selected by
 
Best answer

Value of a machine 3 years ago, P = Rs.60000

Time, n = 3 years 

Rate of depreciates, R = 10% per annum 

Now, 

Amount (A) = P (1 + R/100)n [Where, A = Amount with compound interest 

P = Present value 

R = Annual interest rate 

n = Time in years] 

∴ Value = P (1 - R/100)n [∵ Rate decreases] 

= 60000 (1 - 10/100)3 

= 60000 (1 - 1/10)3 

= 60000 (9/10)3 

= 60000 × 9/10 × 9/10 × 9/10 

= 60 × 9 × 9 × 9 

= 43740 

∴ Present value of the machine is Rs.43740.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...