Question

3. Basheer insured his car for Rs 500,000, at a rate of 2% per
annum for 3 years. The depreciation rate is 5% per year. Find the
total amount he has to pay as premium?
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Answer 1

1st year premium =500000*2%=10000

2nd year premium =475000*2%=9500

3rd year premium=451250*2%=9025

total premium amount =28525

exeplation step to step

2nd year depreciation after total amount

500000*5%=25000

500000-25000=475000

3rd year depreciation after total amount

475000*5%=23750

475000-23750=451250