Question

12. A car depreciates at the rate of 10% every year. If the cost price of the car is 5,00,000, what will be the value of the car after 6 years ? ​

Answer 1

Step-by-step explanation:

Correct option is D)

Present Value A=Rs.52,488

Depreciation rate r=10% per annum

Time t=4 years

Let initial value be P

We know the formula, A=P(1−

100

r

)

t

Substituting the given values, we get.

52,488=P[1−

100

10

]

4

52,488=P(0.9)

4

P=

0.6561

52488

P=Rs.80,000