The value of a machine depreciates at the rate of 10% every year. It was purchased 3 years ago. If its present value is Rs. 8,748, its purchase price was ?

We have P = 8748, R = -10 and n = 3
Therefore, the purchase price of the machine
= $\frac{P}{1+\frac{R}{100}}$= $\frac{8748}{1-\frac{10}{100}}$
= 8748 x (100/90) x (100/90) x (100/90)
= 12,000.

Therefore, the purchase price of the machine was Rs. 12,000.