The value of a machine depreciates at the rate of 10% every year. It was purchased 3 years ago. If its present value is Rs 8,748, its purchase price was?  Options:
A) Rs 16,000 B) Rs 18,000 C) Rs 12,000 D) Rs 14,000 E) none of these
We have P = 8748, R = -10 and n = 3   Therefore, the purchase price of the machine   = P/(1 + (R/100))n = 8748/(1 - (10/100))3   = 8748 x (100/90) x (100/90) x (100/90)   = 12,000.   ANSWER:Rs 12,000
<result>C</result>
The value of a machine depreciates at the rate of 10% every year. It was purchased 3 years ago. If its present value is Rs 8,748, its purchase price was?