Question

A car purchased for rs 360000 its value depreciates every year by 10% calculate the total depreciation in its value at the end of 3 year

Answer 1

The value of the car will be Rs 262440 and the total depreciation will be Rs 97560.

Explanation:

The present price of the car is Rs 360000

Depreciating rate = 10%

Time = 3 years

As the value of the car depreciates from the previous depreciated value so it can be done by the process of compound interest.

∴ The value of the car after 3 years will be_

360000(1-10/100)³

= 360000 {(10-1)/10}³ [∵ The L.C.M. of the denominators is 10.]

= 360000×(9/10)×(9/10)×(9/10)

= (360×9×9×9)

= Rs 262440

∴ The value of the car after 3 years will be Rs 262440.

∴ Total depreciation in its value is = Rs (360000-262440)

                                                           = Rs 97560

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