Mathematics for FinancePYQ June 24Question 1263 of 512
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The value of a machine depreciates every year at the rate of 10%\displaystyle 10\% per annum, on its value at the beginning of that year, if the present value of the machine is 72,900\displaystyle 72,900, then machine's worth 3\displaystyle 3 years ago was:

Options

A80,000\displaystyle 80,000
B94,710\displaystyle 94,710
C1,00,000\displaystyle 1,00,000
D75,087\displaystyle 75,087
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Correct Answer

✅ Option c — 1,00,000\displaystyle 1,00,000

All Options:

  • A80,000\displaystyle 80,000
  • B94,710\displaystyle 94,710
  • C1,00,000\displaystyle 1,00,000
  • D75,087\displaystyle 75,087

Detailed Solution & Explanation

**Derivation of Original Value (3 Years Ago)** Given: - Present Value (Vt\displaystyle V_t) = Rs. 72,900\displaystyle \text{Rs. }72,900 - Rate of Depreciation (d\displaystyle d) = 10%\displaystyle 10\% per annum - Time (t\displaystyle t) = 3\displaystyle 3 years **Step 1: Set up the depreciation formula** Vt=V0(1−d)tV_t = V_0(1 - d)^t 72900=V0(1−0.10)372900 = V_0(1 - 0.10)^3 72900=V0(0.9)372900 = V_0(0.9)^3 72900=0.729V072900 = 0.729 V_0 **Step 2: Solve for V0\displaystyle V_0** V0=729000.729=Rs. 1,00,000V_0 = \frac{72900}{0.729} = \text{Rs. }1,00,000 Hence, **Option C** is the correct answer.

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