Question

Tick (✓) the correct answer:
The value of a machine depreciates at the rate of 10% per annum. It was purchased 3 years ago for Rs 60000. What is the present value of the machine?
(a) Rs 53640
(b) Rs 51680
(c) Rs 43740
(d) Rs 43470

Answer 1

(c) Rs. 43740

$$\begin{gathered} \mathrm{Here},A=\mathrm{Rs}.\mathit{}P\times {\left(1-\frac{R}{100}\right)}^n \\ =\mathrm{Rs}.60000\times {\left(1-\frac{10}{100}\right)}^3 \\ =\mathrm{Rs}.60000\times {\left(\frac{90}{100}\right)}^3 \\ =\mathrm{Rs}.60000\times \left(\frac{9}{10}\right)\times \left(\frac{9}{10}\right)\times \left(\frac{9}{10}\right) \\ =\mathrm{Rs}.\left(60\times 9\times 9\times 9\right) \\ =\mathrm{Rs}.43740 \end{gathered}$$