The value of a machine depreciates at 20% per annum. If its present value is Rs. 1,50,000, at what price should it be sold after two years such that a profit of Rs. 20,000 is made?  Pick one.
A) 328897  B) 120000  C) 877888  D) 116000  E) 188871
The value of the machine after two years = 0.8 * 0.8 * 1,50,000 = Rs. 96,000   SP such that a profit of Rs. 20,000 is made = 96,000 + 20,000 = Rs. 1,16,000   Answer: 116000
<result>D</result>
The value of a machine depreciates at 20% per annum. If its present value is Rs. 1,50,000, at what price should it be sold after two years such that a profit of Rs. 20,000 is made?