The value of a machine depreciates at 20% per annum. Its present value is Rs. 32000. What was its value 2 years ago? MCQ with Answer and Explanation

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The value of a machine depreciates at 20% per annum. Its present value is Rs. 32000. What was its value 2 years ago?

A. Rs. 40000

B. Rs. 50000

C. Rs. 48000

D. Rs. 51200

Answer: Option B

Solution (By JKSSB Mock Tests)

Value 2 years ago = Present value / (1 − 0.2)² = 32000 / 0.64 = 50000.

This question belongs to: Maths Compound Interest

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Question #1

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At what rate percent will Rs. 1500 become Rs. 1653.75 in 2 years at compound interest?

A. 7%

B. 6%

C. 4%

D. 5%

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Correct Answer: Option D

Explanation:
1500(1+r)² = 1653.75 ⇒ (1+r)² = 1.1025 = (1.05)² ⇒ r = 5%.

This question belongs to: Maths Compound Interest

Question #2

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What sum will amount to Rs. 14520 in 2 years at 10% compound interest?

A. Rs. 12000

B. Rs. 11000

C. Rs. 12500

D. Rs. 11500

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Correct Answer: Option A

Explanation:
P = 14520 / 1.21 = 12000.

This question belongs to: Maths Compound Interest

Question #3

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The compound interest on Rs. 20000 at 8% per annum for 1 year compounded half-yearly is:

A. Rs. 1600

B. Rs. 1632

C. Rs. 1680

D. Rs. 1664

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Correct Answer: Option B

Explanation:
Half-yearly rate 4%, n=2. A = 20000 × (1.04)² = 20000 × 1.0816 = 21632, CI = 21632 − 20000 = Rs. 1632.

This question belongs to: Maths Compound Interest

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