Arithmeticmedium · Past Paper

The value of a machine depreciates 10% annually. If its present value is Rs. 1,62,000, what was its value 2 years ago?

ARs. 2,00,000
BRs. 1,80,000
CRs. 1,90,000
DRs. 2,10,000

✓ Correct Answer: ARs. 2,00,000

162000 = P(0.9)^2 => 162000 = P(0.81) => P = 200000.

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