The value of an article depreciates every year at the rate of 10% of its value. If the present value of the article is Rs.729, then its worth 3 years ago wasRs.1250Rs.1000Rs.1125Rs.1200
Question
The value of an article depreciates every year at the rate of 10% of its value. If the present value of the article is Rs.729, then its worth 3 years ago wasRs.1250Rs.1000Rs.1125Rs.1200
Solution
The problem is about depreciation, which is a decrease in the value of an asset over time. In this case, the value of the article decreases by 10% each year.
Here are the steps to solve the problem:
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We know that the present value of the article is Rs. 729.
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We need to find the value of the article 3 years ago. This means we need to reverse the depreciation process.
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Since the value decreases by 10% each year, it means that each year the value is 90% (100% - 10%) of the previous year.
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To find the value 3 years ago, we need to divide the present value by 0.9 (which is 90% expressed as a decimal) three times.
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So, the calculations would be as follows:
First year: 729 / 0.9 = Rs. 810 Second year: 810 / 0.9 = Rs. 900 Third year: 900 / 0.9 = Rs. 1000
So, the value of the article 3 years ago was Rs. 1000.
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