The value of a washing machine depreciates at the rate of 10% every year. If its present value is Rs. 8748, then what was the price of the washing machine three years ago?
Question
The value of a washing machine depreciates at the rate of 10% every year. If its present value is Rs. 8748, then what was the price of the washing machine three years ago?
Solution
To find the original price of the washing machine three years ago, we need to reverse the depreciation process.
Step 1: Understand that a 10% depreciation means the washing machine retains 90% of its value each year.
Step 2: To reverse this, we need to divide the current value by 0.90 (which represents the 90% value it retains each year) for each of the three years.
Step 3: So, for the first year, we divide Rs. 8748 by 0.90, which gives us Rs. 9720.
Step 4: For the second year, we divide Rs. 9720 by 0.90, which gives us Rs. 10800.
Step 5: For the third year, we divide Rs. 10800 by 0.90, which gives us Rs. 12000.
So, the price of the washing machine three years ago was Rs. 12000.
Similar Questions
The value of a washing machine purchased two years ago, depreciates at 12% p.a. If itspresent value is ` 9680, for how much was it purchased?
The value of a machine depreciates at a rate of 10% every year. It was purchased 3 years ago. If its present value is Rs. 8748, its purchase price was :a.14000b.12000c.10000d.16000
A piece of equipment cost a certain factory Rs. 600,000. If it depreciates in value, 15% thefirst year, 13.5 % the next year, 12% the third year, and so on, what will be its value at the endof 10 years, all percentages applying to the original cost?A] 2,00,000B] 1,05,000C] 4,05,000D] 6,50,000
Select the correct answerThe price of a car depreciates in the first year by 25% in the second year by 20% in the third year by 15% and so on. The final price of the car after 3 years, if the present cost of the car is Rs. 10,00,000:Options5, 10,0007, 80, 0006, 90,0001, 70,000
A new car is purchased for 20800 dollars. The value of the car depreciates at 10.75% per year. What will the value of the car be, to the nearest cent, after 13 years?
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.