The value of a machine depreciates at the rate of 10% per annum. If its present value is ₹1,62,000, what was the value (in ₹) of the machine 2 years ago?

Correct option is B

Given:

Present value of the machine = ₹1,62,000

Depreciation rate = 10% per annum

Time = 2 years

Required: Value of machine 2 years ago

Solution:

Original Value = $$\frac{162000}{(1 - \frac{10}{100})^2} = \frac{162000}{(0.9)^2} = \frac{162000}{0.81} =₹2,00,000$$​