Question

Choose the most appropriate option:

The value of a machine depreciates every year at the rate of 10% on its value at the beginning of that year. If the present value of the machine is Rs. 729, its worth three years ago was:

Options

• Rs. 1000

• Rs. 750.87

• Rs. 800

• Rs. 947.70

Answer 1

Rs. 1000

Explanation:

Let the value of Machine 3 years ago = x

Depreciation rate = 10% pa

Present value = 729

`⇒"x"(1-10/100)^3=729`

x = ₹ 1000