The cost of a washing depreciates by ₹900 during the second year and by ₹ 810 during the third year. Then the original cost of the machine is |
₹7000 ₹5000 ₹10000 ₹6000 |
₹10000 |
$\text{Depreciation follows the reducing balance method.}$ $\text{Rate of depreciation }=r.$ $\frac{810}{900}=0.9 \Rightarrow 1-r=0.9 \Rightarrow r=10\%.$ $\text{Depreciation in 2nd year}=0.1\times(\text{value after 1st year})=900.$ $\text{Value after 1st year}=0.9C.$ $0.1\times0.9C=900.$ $0.09C=900.$ $C=10000.$ $\text{Original cost of the machine}=₹10,000.$ |