Question

The value of an article which was purchased $2$ years ago, depreciates at $12$ % per annum. If its present value is Rs .$9680$, the price at which it was purchased is:

• A. Rs. $10,000$
• B. Rs. $12,500$
• C. Rs. $14,575$
• D. Rs. $16,250$

Answer 1

Answer: (B)

Rs. $12,500$

Given, $A=$ Rs.$9680,T=2$ years,$R=12\%$

$\because A=P(1-\frac{R}{100})$
$9680=P{(1-\frac{12}{100})}^2$

$9680=P{\left(\frac{88}{100}\right)}^2$
$P=9680\times \frac{25}{22}\times \frac{25}{22}$
$=$ Rs. $12,500$