Subject: General Aptitude · Chapter: Profit and Loss · Exam: 2016 · Marks: · Difficulty:
The value of a machine depreciates every year at the rate of 10% on its value at the beginning of that year. If the present value of the machine is ` 729, its worth three years ago was
(a)` 947.70
(b)` 1000
(c)` 750.87
(d)` 800
Answer
Answer (as printed): B
Explanation
Given, Present value of machine = ` 729 Rate of depreciation = 10% P 729 729 ∴ Worth three years ago = = = (1 − r ) 3 1 − 10 3 9 3 100 10 6 729 × 10 × 10 × 10 = = ` 1000 9× 9× 9 Hence three year ago, price of machine was ` 1000
Explanation as extracted from the printed page; notation may be imperfect.