Arithmetic Ability
Percentage

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Q.

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. 8,748, its purchase price was ?

View Answer

Correct choice: B

Explanation:

We have P = 8748, R = -10 and n = 3 Therefore, the purchase price of the machine = P(1+R100)n= 8748(1−10100)3 = 8748 x (100/90) x (100/90) x (100/90)= 12,000. Therefore, the purchase price of the machine was Rs. 12,000.
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