The value of a refrigerator that was purchased 2 years ago, depreciates at 12% per annum. If its present value is Rs 9680, how much was it purchased?

Explanation

To find the original purchase price of the refrigerator, we can use the formula for depreciation, which is similar to the compound interest formula but adjusted for depreciation. The formula we will use is:

\[ A = P \left(1 - \frac{r}{100}\right)^t \]

Where:
- \( A \) = Present value (current value)
- \( P \) = Principal amount (original purchase price)
- \( r \) = Rate of depreciation
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