Question:
The value of a machine depreciates at the rate of 10% per annum. It was purchased 3 years ago. If its present value is Rs 43740, find its purchase price.
Solution:
Purchase price $=\mathrm{P}\left(1-\frac{\mathrm{R}}{100}\right)^{-\mathrm{n}}$
$\Rightarrow 43,740\left(1-\frac{10}{100}\right)^{-3}$
$=43,740(0.90)^{-3}$
$=60,000$
Thus, the purchase price of the machine was Rs 60,000 .
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