The price of an article depreciates 10% per year. If the present price of the article is Rs. 162,000 then, find the price of the article before 2 years.

Options

A. Rs. 2,00,000
B. Rs. 1,81,000
C. Rs. 1,92,000
D. Rs. 2,05,000

Answer

To find the price of the article before 2 years given that it depreciates by 10% per year, we can follow these steps:

### Step 1: Understand the depreciation
The article depreciates by 10% per year. This means that after one year, the price of the article will be 90% of its price at the beginning of the year.

### Step 2: Calculate the price after one year
Let the price of the article one year ago be \( P_1 \). Since the current price is Rs. 162,000, we can express this as:
\[ P_1 = \frac{Current\ Price}{(1 - Depreciation\ Rate)} = \frac{162000}{0.9} \]

### Step 3: Calculate the price before one year
Now, we calculate:
\[ P_1 = \frac{162000}{0.9} = 180000 \]

### Step 4: Calculate the price before two years
Now, we need to find the price two years ago, \( P_2 \). We can use the same formula:
\[ P_2 = \frac{P_1}{(1 - Depreciation\ Rate)} = \frac{180000}{0.9} \]

### Step 5: Calculate the price before two years
Now, we calculate:
\[ P_2 = \frac{180000}{0.9} = 200000 \]

### Final Answer
Thus, the price of the article before 2 years was Rs. 200,000.

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