a car was bought at rupees 250000 in 2015 if the values depreciated at the rate of 10% pa find its value after 4 years
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Please understand from this example
Current price of the car, P
o
=Rs360000
Rate of depreciation, 10% for first 2 years, 20% for the third year
Now, Let price after 2 years= P
Thus, P=P
o
(1+
100
R
)
T
P=360000(1+
100
−10
)
2
P=360000×
10×10
9×9
P=291600
After the third year, let the price be P
′
P
′
=P(1+
100
R
′
)
T
P
′
=291600(1+
100
−20
)
1
P
′
=
100
291600×80
P
′
=233280
Thus, the car will cost Rs 233280 after three years .
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