The value of a washing machine purchased two years ago, depreciates at 12% p.a. If itspresent value is ` 9680, for how much was it purchased?

To solve this problem, we need to understand that the depreciation of an item is calculated annually based on its value at the start of that year. In this case, the washing machine depreciates at a rate of 12% per annum.

Given that the present value of the washing machine is 9680, we need to find out its value two years ago.

Step 1: We know that the washing machine's value depreciates 12% every year. So, to find the value of the washing machine one year ago, we divide the present value by 88% (or 0.88), because 100% - 12% = 88%.

So, the value one year ago = 9680 / 0.88 = 11000

Step 2: We repeat the process to find the value two years ago.

So, the value two years ago = 11000 / 0.88 = 12500

Therefore, the washing machine was purchased for ` 12500 two years ago.