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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
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Solution
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
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