Question

The value of machine depreciates every year at the rate of 10% of its value at the beginning of that year.If the present value of the machine is Rs.729, its worth three years ago was:

• A. Rs 1000
• B. Rs 750.87
• C. Rs 800
• D. Rs 947.70

Answer 1

Answer: (A)

Rs 1000

Let value of machine 3 years ago = x
Depreciation rate = 10% p.a.
Present value = 729
x($1-{\frac{10}{100}}^3$) = 729
x = Rs 1000