The value of an article which was purchased 2 years ago, depreciates at 12 % per annum. If its present value is Rs .9680, the price at which it was purchased is?

The problem can be solved using the depreciation formula: 𝐴=𝑃(Step 1: Define the variables and formula 1−𝑟)𝑛 Where: • 𝐴= Present value = Rs. 9680 • 𝑃= Original price (what we need to find) • 𝑟= Annual depreciation rate = 12% or 0.12 • 𝑛= Number of years = 2 Step 2: Substitute the values and solve for P Substitute the given values into the formula and rearrange it to solve for 𝑃 : 9680=𝑃(1−0.12)2 9680=𝑃(0.88)2 9680=𝑃(0.7744) To find the original price 𝑃, divide the present value by the calculated depreciation factor: 𝑃=9680/0.7744 𝑃=12500 Answer: The price at which the article was purchased is Rs. 12500.