Question

The price of a motor bike is depreciated by one-tenth of its price every year. Find the rate of depreciation.​

Answer 1

Correct option is C)

We know that

Final price = initial price(1+

100

rate

)

time

Here the final price = Rs. 8784, time =3 yrs, rate =−10%p.a.

The rate is negative since the price is depriciating.

Let the initial price = Rs. x.

∴x×(1−

100

10

)

3

=8748

⇒x×

10

9

×

10

9

×

10

9

=8748

⇒x=8748×

9

10

×

9

10

×

9

10

= Rs. 12000

So, the price of the machine 3 years back = Rs. 12000.

Ans- Option C.