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. 8748, its purchase price was :
Correct Answer: Option B
Purchase price = Rs \(\lbrack\frac{8748}{(1-{\displaystyle\frac{10}{100}})^3}\rbrack\)
= Rs. [8748 \(\times\) 10 \(\div\) 9 \(\times\) 10 \(\div\) 9 \(\times\) 10 \(\div\) 9]
= Rs.12000
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