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The price of a washing machine depreciates every year by 10 percent. If the value of the washing machine after 3 years will be Rs. 18225, then what is the present value of the washing machine ?

The price of a washing machine depreciates every year by 10 percent. If the value of the washing machine after 3 years will be Rs. 18225, then what is the present value of the washing machine ? Correct Answer Rs. 25000

Given 

The value of washing machine after 3 years = Rs 18225

Formula Used 

Present value of washing machine = value after 3 years × 1000/(R - 1)3

Calculation 

Present value of machine = 18225 × (10/9)3

⇒ Present value = 18225 × 1000/729 = Rs 25000

∴ The present value of answer is Rs 25000

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