Question

A car is valued at Rs5,25,000 .it depreciates by 20% in the first year and thereafter each year by 15% of its value at the begnning of that year. find its value after 2years

Answer 1

Total percentage change = A + B + A*B/100

Since it is a case of depreciation,

= - 20 - 15 + (-15 x -20) / 100

= -35 + 3

= -32%

So the value of car after 2 years will be 100 - 32 = 68% of its present value.

= 68/100 * 525000

= 357000

Car's value will be 357000 after two years.

Answer 2

Is it correct or not please tell me...