The value of a machine depreciates every year by 10%. If the present value of the machine is Rs.54000, what was its value last year?
Let the value of the machine last year = Z
∴ Present value of the machine = (100 – 10) % of Rs.Z
⇒ 54000 = 90% of Z
⇒ 54000 = Z x 90/100
⇒ Z = 54000 x 100/90
⇒ Z = 600 x 100
⇒ Z = 60000