12.0k views
4 votes
The value of a machine depreciates at the rate of 10% per annum. It was purchased 3 years ago. If its present value is Rs 43740, find its purchase price.

pls anwer in details! no spam...​

User Nils Ziehn
by
7.7k points

1 Answer

3 votes

Given

  • present value of the machine : Rs 43,740
  • Rate of depreciation per annum : 10%

To find

  • Purchase value of the machine ( 3 years before )

Let the purchase value be P,

ATQ,

P -3 x 0.1P = Rs 43,740

P-0.3P = Rs 43,740

0.7P = Rs 43,740

P = Rs 43,740/0.7

P = Rs 62,486 (approx)

Hence, the purchase value of the machine would be Rs 62,486

User Ross Hambrick
by
7.8k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.