A machine depreciates at 5% per annum. Its present value is Rs. 5415. What was its value 2 years ago? MCQ with Answer and Explanation

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A machine depreciates at 5% per annum. Its present value is Rs. 5415. What was its value 2 years ago?

A. Rs. 6200

B. Rs. 6400

C. Rs. 6000

D. Rs. 5800

Answer: Option C

Solution (By JKSSB Mock Tests)

Value 2 years ago = 5415 / (0.95)² = 5415 / 0.9025 = 6000.

This question belongs to: Maths Compound Interest

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Question #1

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In how many years will Rs. 4000 amount to Rs. 4630.50 at 5% per annum compound interest?

A. 3 years

B. 3.5 years

C. 2 years

D. 2.5 years

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Correct Answer: Option A

Explanation:
4000(1.05)^t = 4630.50 ⇒ (1.05)^t = 1.157625 = (1.05)³ ⇒ t = 3.

This question belongs to: Maths Compound Interest

Question #2

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What sum will produce Rs. 410 as compound interest in 2 years at 5% per annum?

A. Rs. 4400

B. Rs. 3800

C. Rs. 4000

D. Rs. 4200

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Correct Answer: Option C

Explanation:
P = 410 / [(1.05)² − 1] = 410 / 0.1025 = 4000.

This question belongs to: Maths Compound Interest

Question #3

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The difference between compound interest and simple interest on a certain sum for 2 years at 7% is Rs. 49. Find the sum.

A. Rs. 9000

B. Rs. 10000

C. Rs. 12000

D. Rs. 11000

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Correct Answer: Option B

Explanation:
D = P × (0.07)² = P × 0.0049 = 49 ⇒ P = 10000.

This question belongs to: Maths Compound Interest

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