Question

A bike costs rs.48000. its value depreciates by 30% in the first year and in each subsequent year the depreciation is 20% of the value at the beginning of that year. the value of the bike after 3 years will be

Answer 1

value of bike 48000
book value in first year is 48000-(48000×30%)=33600
book value at end of 2nd year is
33600-(33600×20%) =26880
book value at end of 3rd year is
26880-(26880×20%) =21504
value of asset after 3 years is 21504

Answer 2

Answer:

The value of bike after 3 years is 21504.

Step-by-step explanation:

Given that bike cost = 480000

Its value depreciates by 30% in the first year and in each subsequent year the depreciation is 20% of the value at the beginning of that year.

We have find after 3 years the value of bike.

Bike value in first year is 48000 - (48000 × 30%) = 33600

Bike value at end of second year is

33600 - (33600 × 20%) = 26880

Bike value at end of third year is

26880 - (26880 × 20%) = 21504

Therefore, the value of bike after 3 years is 21504.