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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 8748, its purchase price was.
  1. 8,000
  2. 85,000
  3. 1,000
  4. 12,000

A
1,000
B
8,000
C
85,000
D
12,000
Solution
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The correct option is D 12,000
Machine's purchase price was
=P(1R100)w=Rs8748(110100)3=Rs8748(9100)3=Rs8748×109×109×109=Rs12000

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