Question

A washing machine was purchased 3 years ago for Rs 19,440. Its value depreciates at $16\frac{2}{3}$% per annum. Calculate its present value and value after $1$ year.

• A. Rs. 11,250; Rs. 9,375
• B. Rs. 9,375; Rs. 11,250
• C. Rs. 13,500; Rs. 7,812
• D. Rs. 7812; Rs. 13,500

Answer 1

The correct option is A Rs. 11,250; Rs. 9,375

Cost price of washing machine $3$ years ago$=Rs.19440$

Depreciation rate per year$=16\frac{2}{3}\%$

Price of washing machine after $1$ year of purchase $=19440-\frac{50}{3\times 100}\times 19440=19440-3240=Rs.16200$

Price of washing machine after $2$ years of purchase $=16200-\frac{50}{3\times 100}\times 16200=16200-2700=Rs.13500$

Price of washing machine after $3$ years of purchase $=13500-\frac{50}{3\times 100}\times 13500=13500-2250=Rs.11250$

Hence, present value of washing machine$=Rs.11250$

And vaue after $1$ year $=11250-\frac{50}{3\times 100}\times 11250=11250-1875=Rs.9375$