Compound Interest Practice Test 6

Question : 8 of 9

Marks: +1, -0

The value of a machine depreciates at 10% every year. It was purchased 2 years ago. If its present value is Rs 96,750, find value of the machine at the time of purchase.

Rs 1,09,652
Rs 1,99,990
Rs 1,19,445
Rs 12,00,450
None of these

Validate

Solution:

Present value of the machine

=P(1-r/100)^t

96750=P(1-10/100)^2

96750=P(9/10)^2

P=1,19,445

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