The value of a machine depreciates at the rate of 10% every year. It was purchased 3 years ago. If its…

Let the purchase price 3 years ago be $P$. With 10% annual depreciation: $P \times \left(1 - \frac{10}{100}\right)^3 = 8748 \implies P \times (0.9)^3 = 8748 \implies 0.729 P = 8748 \implies P = \frac{8748}{0.729} = \text{Rs. }12,000$.