The value of a machine depreciates at the rate of 10% per annum. If its present value is Rs. 162000, what was its value 2 years ago? MCQ with Answer and Explanation

Question

The value of a machine depreciates at the rate of 10% per annum. If its present value is Rs. 162000, what was its value 2 years ago?

A. Rs. 210000

B. Rs. 190000

C. Rs. 200000

D. Rs. 220000

Answer: Option C

Solution (By JKSSB Mock Tests)

Value 2 years ago = 162000 / (1 - 10/100)^2 = 162000 / (0.9)^2 = 162000 / 0.81 = Rs. 200000.

This question belongs to: Maths Compound Interest

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Question #1

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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

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Correct Answer: Option B

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

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% per annum compound interest?

A. Rs. 13000

B. Rs. 14000

C. Rs. 11000

D. Rs. 12000

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Correct Answer: Option D

Explanation:
P = 14520 / (1.1)² = 14520 / 1.21 = 12000.

This question belongs to: Maths Compound Interest

Question #3

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The simple interest on a sum for 2 years at 8% is Rs. 480. The compound interest on the same sum for 2 years at 8% is:

A. Rs. 508.80

B. Rs. 499.20

C. Rs. 512.00

D. Rs. 502.40

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Correct Answer: Option B

Explanation:
P = 48000/(8×2) = 3000. CI = 3000[(1.08)² − 1] = 3000 × 0.1664 = Rs. 499.20.

This question belongs to: Maths Compound Interest

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