The value of a machine depreciates at 20% per annum. Its present value is Rs. 32000. What was its value 2 years ago? MCQ with Answer and Explanation

The value of a machine depreciates at 20% per annum. Its present value is Rs. 32000. What was its value 2 years ago?

A. Rs. 40000

B. Rs. 51200

C. Rs. 48000

D. Rs. 50000

Answer: Option D

Value 2 years ago = Present value / (1 − 0.2)² = 32000 / 0.64 = 50000.

This question belongs to: Maths Compound Interest

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Question #1 Report Error

The difference between CI and SI on Rs. 6000 for 2 years at 5% is:

A. Rs. 12

B. Rs. 15

C. Rs. 20

D. Rs. 18

Correct Answer: Option B

Explanation:
D = 6000 × (0.05)² = 6000 × 0.0025 = Rs. 15.

This question belongs to: Maths Compound Interest

Question #2 Report Error

In how many years will Rs. 3500 amount to Rs. 4235 at 10% per annum compound interest?

A. 1.5 years

B. 2 years

C. 2.5 years

D. 1 year

Correct Answer: Option B

Explanation:
3500(1.1)^t = 4235 ⇒ (1.1)^t = 1.21 ⇒ t = 2.

This question belongs to: Maths Compound Interest

Question #3 Report Error

The difference between CI and SI on Rs. 4200 for 2 years at 5% is:

A. Rs. 10.50

B. Rs. 12.00

C. Rs. 8.40

D. Rs. 9.00

Correct Answer: Option A

Explanation:
D = 4200 × 0.0025 = Rs. 10.50.

This question belongs to: Maths Compound Interest