Given details are,
Present value of refrigerator is = Rs 9680
Depreciation rate is = 12%
Let the price of refrigerator 2 years ago be = Rs x
By using the formula,
A = P (1 + R/100)n
9680 = x (1 – 12/100) (1 – 12/100)
9680 = x (88/100) (88/100)
9680 = x (0.88) (0.88)
9680 = 0.7744x
x = 9680/0.7744
= 12500
∴ The refrigerator was purchased for Rs 12500.