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. 24,000 is made?
Q1. 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. 24,000 is made?
Answer: Rs. 1,20,000
Explanation: Value after 2 years = 150000×0.8×0.8 = Rs. 96000; selling price for Rs. 24000 profit = 96000+24000 = Rs. 120000.