Question

a car was bought 3 years ago at a price rupees 60,00,000. if the rate of depreciation is 20% per year , find the present value of the car.​

Answer 1

Answer:

24,00,000

Step-by-step explanation:

After first year,

20% of 60,00,000 is depreciated, which is 60,00,000 - (20/100)*60,00,000

= 48,00,000.

Therefore, as every year, it decreases by 12,00,000, after next year, the value is 36,00,000 and then finally at the end of third year (present) value is 24,00,000 rupees.

Answer 2

Answer:

30,72,000

Step-by-step explanation:

initial cost 60,00,000

after 1 yr-> 60,00,000-(20/100*60,00,000)->48,00,000

after 2 yrs-> 48,00,000-(20/100*48,00,000)->38,40,000

after 3 yrs-> 38,40,000-(20/100*38,40,000)->30,72,000

OR

after depreciation, 80% = >0.8 times

after 3 yrs -> 0.8 x 0.8 x 0.8 x 60,00,000= 30,72,000