Question 140

The value of a machine depreciates every year at the rate of 10% on its value at the beginning of that year. If the current value of the machine is r 729, its worth 3years ago was:

Solution

Let the value of the machine 3 years ago be $$100x$$

Since, every year value decreases by 10%

=> Current value = $$(0.9)^3 * 100x = 729$$

=> $$100x = \frac{729}{0.729} = 1000$$

=> $$x = 10$$

=> Value 3 years ago = Rs. 1,000

Share on Whatsapp Share on Whatsapp

Create a FREE account and get: