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The value of a machine depreciates at the rate of 10% per year. It was purchased three years ago. If its present value is Rs. 1,45,800, then for how much was it purchased?
  • a)
    Rs. 1,75,800
  • b)
    Rs. 1,80,000
  • c)
    Rs. 2,00,000
  • d)
    Rs. 2,10,000
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
The value of a machine depreciates at the rate of 10% per year. It was...
Given information:

The machine depreciates at a rate of 10% per year. It was purchased three years ago, and its present value is Rs. 1,45,800.

Calculating the original purchase price:

To find out the original purchase price, we need to calculate the current value of the machine by applying the depreciation rate for three years.

Let's assume the original purchase price of the machine is x.

After the first year, the value of the machine will be 90% of x, which is 0.9x.
After the second year, the value of the machine will further decrease to 90% of 0.9x, which is 0.9 * 0.9x = 0.81x.
After the third year, the value of the machine will decrease to 90% of 0.81x, which is 0.9 * 0.81x = 0.729x.

Given that the present value of the machine is Rs. 1,45,800, we can set up the following equation:

0.729x = 1,45,800

Solving the equation:

To solve the equation, divide both sides by 0.729:

x = 1,45,800 / 0.729

x ≈ Rs. 2,00,000

Therefore, the machine was purchased for Rs. 2,00,000.
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Community Answer
The value of a machine depreciates at the rate of 10% per year. It was...
Let the purchase price of the machine three years ago = Rs. P
So, (0.90)3 P = 145800
Or, P = 145800/0.729 = 200000
Thus, the purchase price of the machine three years ago = Rs. 2,00,000
Hence, option (3) is correct.
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The value of a machine depreciates at the rate of 10% per year. It was purchased three years ago. If its present value is Rs. 1,45,800, then for how much was it purchased?a)Rs. 1,75,800b)Rs. 1,80,000c)Rs. 2,00,000d)Rs. 2,10,000Correct answer is option 'C'. Can you explain this answer? for CTET & State TET 2025 is part of CTET & State TET preparation. The Question and answers have been prepared according to the CTET & State TET exam syllabus. Information about The value of a machine depreciates at the rate of 10% per year. It was purchased three years ago. If its present value is Rs. 1,45,800, then for how much was it purchased?a)Rs. 1,75,800b)Rs. 1,80,000c)Rs. 2,00,000d)Rs. 2,10,000Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CTET & State TET 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The value of a machine depreciates at the rate of 10% per year. It was purchased three years ago. If its present value is Rs. 1,45,800, then for how much was it purchased?a)Rs. 1,75,800b)Rs. 1,80,000c)Rs. 2,00,000d)Rs. 2,10,000Correct answer is option 'C'. Can you explain this answer?.
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