Question

The value of a machine depreciates at the rate of 10% every year. It was purchased 3 years ago. If its present value is Rs 8748, its purchase price was 

(a) Rs 10000 

(b) Rs 11372 

(c) Rs 12000 

(d) Rs 12500

Answer 1

(c) Rs 12000

Let the purchase price of the machine be Rs x.

Then, 8748 = x\(\big(1-\frac{10}{100}\big)^3\) = x x \(\frac{9}{10}\) x \(\frac{9}{10}\) x \(\frac{9}{10}\)

\(\Rightarrow\)x = \(\frac{8748\times1000}{729}\) = Rs 12000.