A refrigerator was bought 2 years ago whose present price after depreciating at the rate of 12% p.a. is Rs.9680. For how much was it bought?

Correct option is B

Given:

The present value of the refrigerator after depreciation is Rs. 9680. The depreciation rate is 12% per annum, and the time period is 2 years. We need to find the original price.

Formula Used:

The formula for depreciation is:

$$P = A \times (1 - r)^t$$​​

Where:
- P = Present value (after depreciation)
- A = Original value (to be determined)
- r = Annual rate of depreciation (in decimal)
- t = Time period in years

Rearranging for A :

$$A = \frac{P}{(1 - r)^t}$$​​

Solution:

1. Substitute the values:
P = 9680 , r = 12% = 0.12 , t = 2

$$A = \frac{9680}{(1 - 0.12)^2}$$​​

2. Simplify the denominator:

1 - 0.12 = 0.88

$$(0.88)^2 = 0.7744$$​​

3. Calculate A :
$$A = \frac{9680}{0.7744} \approx 12500$$​​

Final Answer:

Option B: 12500