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The value of a machine at the rate of 20% per annum. It was purchased 2 years ago if its present value is Rs. 4000, for how much was it purchased?
- a)Rs. 62500
- b)Rs. 62800
- c)Rs. 65200
- d). 56500
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
The value of a machine at the rate of 20% per annum. It was purchased ...
Let value of a machine 2 years ago, = P
Present value of machine = Rs.40000
Time, n = 2 years
Rate of depreciates, R = 20% per annum
Now,
Amount (A) = P (1 + R/100)^n [Where, A = Amount with compound interest
P = Present value
R = Annual interest rate
n = Time in years]
∴ Value = P (1 - R/100)n [∵ Rate decreases]
⇒ 40000 = P (1 - 20/100)2
⇒ 40000 = P (1 - 1/5)2
⇒ 40000 = P (4/5)2
⇒ 40000 = P � 16/25
⇒ P = 40000 x 25/16
⇒ P = 2500 x 25
⇒ P = 62500
∴ Value of a machine 2 years ago is Rs.62500.
Most Upvoted Answer
The value of a machine at the rate of 20% per annum. It was purchased ...
Calculation:
The formula to calculate the present value of an item is:
Present Value = Purchase Price * (1 + Rate of Depreciation)^Number of Years
Given data:
Rate of depreciation = 20% per annum
Present Value = Rs. 4000
Number of years = 2
Let the purchase price be x:
Using the formula:
4000 = x * (1 - 0.20)^2
4000 = x * (0.80)^2
4000 = x * 0.64
x = 4000 / 0.64
x = 6250
Therefore, the machine was purchased for Rs. 6250.
Conclusion:
The machine was purchased for Rs. 6250. Hence, option A is the correct answer.
The formula to calculate the present value of an item is:
Present Value = Purchase Price * (1 + Rate of Depreciation)^Number of Years
Given data:
Rate of depreciation = 20% per annum
Present Value = Rs. 4000
Number of years = 2
Let the purchase price be x:
Using the formula:
4000 = x * (1 - 0.20)^2
4000 = x * (0.80)^2
4000 = x * 0.64
x = 4000 / 0.64
x = 6250
Therefore, the machine was purchased for Rs. 6250.
Conclusion:
The machine was purchased for Rs. 6250. Hence, option A is the correct answer.
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The value of a machine at the rate of 20% per annum. It was purchased 2 years ago if its present value is Rs. 4000, for how much was it purchased?a)Rs. 62500b)Rs. 62800c)Rs. 65200d). 56500Correct answer is option 'A'. Can you explain this answer? for Class 8 2026 is part of Class 8 preparation. The Question and answers have been prepared according to the Class 8 exam syllabus. Information about The value of a machine at the rate of 20% per annum. It was purchased 2 years ago if its present value is Rs. 4000, for how much was it purchased?a)Rs. 62500b)Rs. 62800c)Rs. 65200d). 56500Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Class 8 2026 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The value of a machine at the rate of 20% per annum. It was purchased 2 years ago if its present value is Rs. 4000, for how much was it purchased?a)Rs. 62500b)Rs. 62800c)Rs. 65200d). 56500Correct answer is option 'A'. Can you explain this answer?.
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