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A company rented a machine for Rs.700/- a month. Five years later the treasurer calculated that if the company had purchased the machine and paid Rs.100/- monthly maintenance charge, the company would have saved Rs.2000/-. What was the purchase price of the machine?
Correct answer is '34000'. Can you explain this answer?
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Verified Answer
A company rented a machine for Rs.700/- a month. Five years later the ...
Lets assume the price of the machine = x rupee
5 year maintenance charge = 100*60 = 6000
so total investment = x+6000
now total rental charges for five year = 700*60 = 42000
so according to given condition 42000-x-6000 = 2000 so x = 34000
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5 year maintenance charge = 100*60 = 6000
so total investment = x+6000
now total rental charges for five year = 700*60 = 42000
so according to given condition 42000-x-6000 = 2000 so x = 34000
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A company rented a machine for Rs.700/- a month. Five years later the ...
The Problem
A company rented a machine for Rs. 700/- a month. After five years, the treasurer realized that if the company had purchased the machine and paid a monthly maintenance charge of Rs. 100/-, they would have saved Rs. 2000/-. The task is to determine the purchase price of the machine.
The Approach
To solve this problem, we need to calculate the total cost of renting the machine for five years and compare it with the cost of purchasing the machine and paying the maintenance charge for the same duration.
Calculating the Cost of Renting the Machine
The company rented the machine for Rs. 700/- per month, so the total cost of renting the machine for five years can be calculated as follows:
Total cost of renting = Monthly rent * Number of months
= Rs. 700 * 12 * 5
= Rs. 42,000
Calculating the Cost of Purchasing and Maintaining the Machine
Let's assume the purchase price of the machine is 'P'.
The cost of purchasing the machine and maintaining it for five years can be calculated as follows:
Total cost of purchasing and maintaining = Purchase price + (Monthly maintenance charge * Number of months)
= P + (Rs. 100 * 12 * 5)
= P + Rs. 6,000
According to the problem, the company would have saved Rs. 2000/- if they had chosen the option of purchasing and maintaining the machine.
So, we can set up the following equation:
Total cost of renting - Total cost of purchasing and maintaining = Rs. 2000
Rs. 42,000 - (P + Rs. 6,000) = Rs. 2000
Rs. 42,000 - Rs. 6,000 - P = Rs. 2000
Rs. 36,000 - P = Rs. 2000
-P = Rs. 2000 - Rs. 36,000
-P = -Rs. 34,000
P = Rs. 34,000 (taking the negative sign to the other side)
Therefore, the purchase price of the machine is Rs. 34,000.
A company rented a machine for Rs. 700/- a month. After five years, the treasurer realized that if the company had purchased the machine and paid a monthly maintenance charge of Rs. 100/-, they would have saved Rs. 2000/-. The task is to determine the purchase price of the machine.
The Approach
To solve this problem, we need to calculate the total cost of renting the machine for five years and compare it with the cost of purchasing the machine and paying the maintenance charge for the same duration.
Calculating the Cost of Renting the Machine
The company rented the machine for Rs. 700/- per month, so the total cost of renting the machine for five years can be calculated as follows:
Total cost of renting = Monthly rent * Number of months
= Rs. 700 * 12 * 5
= Rs. 42,000
Calculating the Cost of Purchasing and Maintaining the Machine
Let's assume the purchase price of the machine is 'P'.
The cost of purchasing the machine and maintaining it for five years can be calculated as follows:
Total cost of purchasing and maintaining = Purchase price + (Monthly maintenance charge * Number of months)
= P + (Rs. 100 * 12 * 5)
= P + Rs. 6,000
According to the problem, the company would have saved Rs. 2000/- if they had chosen the option of purchasing and maintaining the machine.
So, we can set up the following equation:
Total cost of renting - Total cost of purchasing and maintaining = Rs. 2000
Rs. 42,000 - (P + Rs. 6,000) = Rs. 2000
Rs. 42,000 - Rs. 6,000 - P = Rs. 2000
Rs. 36,000 - P = Rs. 2000
-P = Rs. 2000 - Rs. 36,000
-P = -Rs. 34,000
P = Rs. 34,000 (taking the negative sign to the other side)
Therefore, the purchase price of the machine is Rs. 34,000.
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A company rented a machine for Rs.700/- a month. Five years later the treasurer calculated that if the company had purchased the machine and paid Rs.100/- monthly maintenance charge, the company would have saved Rs.2000/-. What was the purchase price of the machine?Correct answer is '34000'. Can you explain this answer?
Question Description
A company rented a machine for Rs.700/- a month. Five years later the treasurer calculated that if the company had purchased the machine and paid Rs.100/- monthly maintenance charge, the company would have saved Rs.2000/-. What was the purchase price of the machine?Correct answer is '34000'. Can you explain this answer? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about A company rented a machine for Rs.700/- a month. Five years later the treasurer calculated that if the company had purchased the machine and paid Rs.100/- monthly maintenance charge, the company would have saved Rs.2000/-. What was the purchase price of the machine?Correct answer is '34000'. Can you explain this answer? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company rented a machine for Rs.700/- a month. Five years later the treasurer calculated that if the company had purchased the machine and paid Rs.100/- monthly maintenance charge, the company would have saved Rs.2000/-. What was the purchase price of the machine?Correct answer is '34000'. Can you explain this answer?.
A company rented a machine for Rs.700/- a month. Five years later the treasurer calculated that if the company had purchased the machine and paid Rs.100/- monthly maintenance charge, the company would have saved Rs.2000/-. What was the purchase price of the machine?Correct answer is '34000'. Can you explain this answer? for Quant 2024 is part of Quant preparation. The Question and answers have been prepared according to the Quant exam syllabus. Information about A company rented a machine for Rs.700/- a month. Five years later the treasurer calculated that if the company had purchased the machine and paid Rs.100/- monthly maintenance charge, the company would have saved Rs.2000/-. What was the purchase price of the machine?Correct answer is '34000'. Can you explain this answer? covers all topics & solutions for Quant 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company rented a machine for Rs.700/- a month. Five years later the treasurer calculated that if the company had purchased the machine and paid Rs.100/- monthly maintenance charge, the company would have saved Rs.2000/-. What was the purchase price of the machine?Correct answer is '34000'. Can you explain this answer?.
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A company rented a machine for Rs.700/- a month. Five years later the treasurer calculated that if the company had purchased the machine and paid Rs.100/- monthly maintenance charge, the company would have saved Rs.2000/-. What was the purchase price of the machine?Correct answer is '34000'. Can you explain this answer?, a detailed solution for A company rented a machine for Rs.700/- a month. Five years later the treasurer calculated that if the company had purchased the machine and paid Rs.100/- monthly maintenance charge, the company would have saved Rs.2000/-. What was the purchase price of the machine?Correct answer is '34000'. Can you explain this answer? has been provided alongside types of A company rented a machine for Rs.700/- a month. Five years later the treasurer calculated that if the company had purchased the machine and paid Rs.100/- monthly maintenance charge, the company would have saved Rs.2000/-. What was the purchase price of the machine?Correct answer is '34000'. Can you explain this answer? theory, EduRev gives you an
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