Question

The value of a machine depreciated 10% every year. If its present value is Rs 387000, what was its value 1 year ago?

Answer 1

Let Rs x be the value of the machine one year ago.

Then, its present value = 90% of Rs x
= Rs $\left(\frac{90}{100}\times x\right)$ = Rs $\left(\frac{9x}{10}\right)$
It is given that present value of the machine = Rs 387000
⇒ x = Rs$\left(\frac{387000\times 10}{9}\right)$ = Rs $\left(43000\times 10\right)$ = Rs 430000

Hence, the value of the machine a year ago was Rs 430000.