# The value of the machine depreciates at the rate of 15% p.a. It was purchased 2 years ago. Its present value is Rs. 7225. What was the purchase price of the machine? - Mathematics and Statistics

Sum

The value of the machine depreciates at the rate of 15% p.a. It was purchased 2 years ago. Its present value is Rs. 7225. What was the purchase price of the machine?

#### Solution

Given,

Rate of depreciation = r = 15%

Number of years = n = 2 years.

Present value of machine = P.V. = ₹ 7,225

The purchase price (V) of the machine can be found out using

P.V. = V(1 - "r"/100)^"n"

∴ 7225 = V(1 - 15/100)^2

∴ V((100 - 15)/100)^2 = 7225

∴ V(85/100)^2 = 7225

∴ V(17/20)^2 = 7225

∴ V = (7225 xx 20 xx 20)/(17 xx 17)

∴ V = 10,000

∴ The purchase price of the machine was ₹ 10,000/-.

Concept: Depreciation
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#### APPEARS IN

Balbharati Mathematics and Statistics 2 (Commerce) 11th Standard HSC Maharashtra State Board
Chapter 9 Commercial Mathematics
Miscellaneous Exercise 9 | Q 9 | Page 144