Maths · Arithmetic and Geometric progressions

The value of machine depreciates every year at the rate of of its value at the b

The value of machine depreciates every year at the rate of \( 10 \% \) of its value at the beginning of that year.If the present value of the machine is Rs.729, its worth three years ago was:

  • A. Rs 1000
  • B. Rs 750.87
  • C. \) Rs 800
  • D. Rs 947.70

Step-by-step solution

The depreciation rate is 10% per year, so the value multiplies by 0.9 each year. Let the value three years ago be x. Then, x × (0.9)^3 = 729. Solving: x = 729 / 0.729 = 1000.
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