There is a decrease of 10% yearly on an article. If this article was bought 3 years ago and present cost is Rs. 5,832 then what was the cost of article at buying time?

Solution (By Examveda Team)

$$A = P {\left( {1 - \frac{R}{{100}}} \right)^n}$$
Where A = Value of goods after n years
P = Initial Price
R = Rate of depriciation
$$\eqalign{ & \therefore P = \frac{{5832}}{{{{\left( {1 - \frac{{10}}{{100}}} \right)}^3}}} \cr & \Rightarrow P = \frac{{5832}}{{{{\left( {1 - \frac{1}{{10}}} \right)}^3}}} \cr & \Rightarrow P = \frac{{5832}}{{{{\left( {\frac{9}{{10}}} \right)}^3}}} \cr & \Rightarrow P = 5832 \times \frac{{10}}{9} \times \frac{{10}}{9} \times \frac{{10}}{9} \cr & \Rightarrow P = 8000 \cr} $$