Arithmetichard · Past Paper

The value of a machine depreciates 10% annually. If its current value is Rs. 81000, what was its value 2 years ago?

ARs. 100000
BRs. 90000
CRs. 110000
DRs. 95000

✓ Correct Answer: ARs. 100000

V = P(1-r/100)^n. 81000 = P(0.9)^2 => 81000 = 0.81P => P = 100000.

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