Advertisements
Advertisements
Question
The value of the machine depreciates at the rate of 15% p.a. It was purchased 2 years ago. Its present value is Rs. 7225. What was the purchase price of the machine?
Solution
Given,
Rate of depreciation = r = 15%
Number of years = n = 2 years.
Present value of machine = P.V. = ₹ 7,225
The purchase price (V) of the machine can be found out using
P.V. = V`(1 - "r"/100)^"n"`
∴ 7225 = V`(1 - 15/100)^2`
∴ V`((100 - 15)/100)^2 = 7225`
∴ V`(85/100)^2 = 7225`
∴ V`(17/20)^2 = 7225`
∴ V = `(7225 xx 20 xx 20)/(17 xx 17)`
∴ V = 10,000
∴ The purchase price of the machine was ₹ 10,000/-.
APPEARS IN
RELATED QUESTIONS
Kanchan purchased a Maruti car for Rs.2,45,000/- and the rate of depreciation is `14 2/7 %` per annum. Find the value of the car after two years?
The value of a machine depreciates from Rs.32768 to Rs.21,952/- in three years. What is the rate of depreciation?
The value of a machine depreciates at a rate of 10% every year. It was purchased 3 years ago. Its present value is Rs.2,18,700/-. What was the purchase price of the machine?
Mr. Manish purchased a motorcycle at Rs.70,000/-. After some years he sold his motorcycle at the exact depreciated value of it that is Rs.51,030/-. The rate of depreciation was taken as 10%. Find after how many years he sold his motorcycle.
Mr. Chetan purchased furniture for her home at Rs.5,12,000/-. Considering the rate of depreciation as 12.5%, what will be the value of furniture after 3 years.
Grace Fashion Boutique purchased a sewing machine at Rs.25,000/-. After 3 years machine was sold at a depreciated value Rs.18,225/- Find the rate of depreciation.
Mr. Pritesh reduced the value of his assets by 5% each year, which were purchased for Rs.50,00,000/-. Find the value of assets after 2 years.
A manufacturing company is allowed to charge a 10% depreciation on its stock. The initial value of the stock was Rs.60,000/-. After how many years the value of the stock will be 39366?
A tree increases annually by 1/8 of its height. By how much will it increase after 2½ years. If its length today is 8 m.?
A building worth Rs. 121000 is constructed on land worth Rs. 81000. After how many years will the value of both be the same if land appreciates at 10% pa. and buildings depreciate at 10% p.a.
What is ‘Depreciation’?
