Question

The value of machine depreciates 10% every year. If its present value is Rs.38700, what was its value 1 year ago?.

Answer 1

Let us suppose the value of the machine 1 year ago be 'x'

10% of x $=x\times \frac{10}{100}=\frac{x}{10}$

As per question

$x-\frac{x}{10}=38700$

$\frac{9x}{10}=38700$

$9x=387000$

$x=\frac{387000}{9}$

$x=43000$

Hence the value of machine 1 year ago will be Rs.43000