The value of a machine depreciates at the rate of 20% every year. It was purchased 6 years ago. If its present value is Rs. 17,496, its purchase price was : a) 25023.4 b) 67040.0 c) 34171.8 d) 27337.5

1 Answer

Answer :

Answer: C

 Purchase price = 17,496 / (1 -20/ 100)³

 = 17,496 × 10/8 × 10/8 ×10/8

 = 17496 × 1.25 × 1.25 ×1.25

 = 17496 ×1.953

 = 34171.8

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