The value of an article which was purchased 2 years ago depreciates at 12'%' per annum. If its present value is Rs. '9,680, the price at which it was purchased is:
Q1. The value of an article which was purchased 2 years ago depreciates at 12'%' per annum. If its present value is Rs. '9,680, the price at which it was purchased is:
Answer: Rs. 12,500
Explanation: After 2 years of 12% depreciation: Present Value = P × (1 − 0.12)² = P × 0.7744 = 9680, giving P = Rs.12,500.