A washing machine was purchased 3 years ago for Rs 19,440. Its value depreciates at $16 \frac{3}{2}$ % per annum. Calculate its present value and value after 1 year.

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Rs. 11,250; Rs. 9,375

Rs. 9,375; Rs. 11,250

Rs. 13,500; Rs. 7,812

Rs. 7812; Rs. 13,500

answer is A.

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Detailed Solution

Concept- The present value can be calculated by depreciating the specified percentage each year, and the price of the previous month will be the CP (cost) of the next year. Similarly, next year's value can be obtained by devaluing (at a given percentage) from the current price. The price for each year can be calculated as follows:

, where D% is the depreciation percentage and CP is the cost.
The cost of the washing machine 3 years ago

Annual depreciation rate

Washing machine price one year after purchase

Washing machine price 2 years after purchase

Washing machine price 3 years after purchase

Therefore, the cash value of the washing machine

Rs. 11250
And value after 1 year

Hence, option 1 is correct.

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