Tick (✓) the correct answer


Tick (✓) the correct answer:

The value of a machine depreciates at the rate of 20% per annum. It was purchased 2 years ago. If its present value is Rs 40000, for how much was it purchased?

(a) Rs 56000

(b) Rs 62500

(c) Rs 65200

(d) Rs 56500


(b) Rs. 62500

Here, $A=P \times\left(1-\frac{R}{100}\right)^{n}$

$=P \times\left(1-\frac{20}{100}\right)^{2}$

$=P \times\left(\frac{80}{100}\right)^{2}$

$=P \times\left(\frac{4}{5}\right) \times\left(\frac{4}{5}\right)$

$\Rightarrow 40000=\frac{16 P}{25}$

$\therefore P=\frac{40000 \times 25}{16}=$ Rs 62500


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