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- The value of a machine depreciates every year by 10%. If its present value is rs. 38700, find its value a year ago.
- The salary of a bank clerk was incresed by 7%. If his present salary is rs. 8025, what was it before increment?

*x*.

Rate of depreciation every year = 10%

So, value of machine this year = $x-x\times \frac{10}{100}=x-\frac{x}{10}=\frac{9x}{10}$

And the given present value is Rs.38700, so we have;

$\frac{9x}{10}=38700\phantom{\rule{0ex}{0ex}}\Rightarrow x=\frac{38700\times 10}{9}=43000$

Therefore, the value of machine one year ago is Rs.43000.

2) Suppose the salary of bank clerk was

*x*before increment.

Increment percentage = 7%

So, the present salary = $x+x\times \frac{7}{100}=\frac{107x}{100}$

And the given present salary is Rs.8025, so we have;

$\frac{107x}{100}=8025\phantom{\rule{0ex}{0ex}}\Rightarrow x=\frac{8025\times 100}{107}=7500$

Therefore the salary before increment is Rs.7500

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