Question

6. A car was bought in 2009 for $120 000h
its value decreased by 20%. In 2011, its
decreased by 10% of its value in 2010. Fine
value of the car at the end of 2011,
1​

Answer 1

Answer:

Present value of car, P = Rs.348000

Rate of depreciates for 1st year, p = 10%

Rate of depreciates for 2nd year, q = 20%

Time, n = 2 years

Now,

Value = P × (1 - p/100) × (1 - q/100)

= 348000 × (1 - 10/100) × (1 - 20/100)

= 348000 × (1 - 1/10) × (1 - 1/5)

= 348000 × 9/10 × 4/5

= 34800 × 9 × 4/5

= 6960 × 9 × 4

= 25056

∴ Value of the car after 2 years is Rs.25056.