A man bought a flat at 10 Lakhwani. The price of flat appreciates by 20% in the first year purchase. Due to some reason it's price in subsequent years goes on depreciating at the rate of 10% every year. If he sells the flat after 3 years what will be his profit or loss from it?
Answers
Please see the attachment
Answer:
The man will face a loss of Rs. 28,000 or Rs. 0.28 lakh after selling the flat after three years.
Step-by-step explanation:
C.P. of the flat = Rs. 10,00,000
Rate of appreciation in the 1st year = 20%
Rate of depreciation in subsequent years after 1st year = 10% per year
Time (after which the man will sell the flat) = 3 years
S.P. of the flat after 3 years
= Rs. 10,00,000 × ( 1 + 20/100 ) × ( 1 - 10/100 ) × ( 1 - 10/100)
= Rs. 1,00,000 × 120/100 × 90/100 × 90/100
= Rs. 9,72,000
Clearly, C.P. > S.P.
Therefore, Loss
= ( C.P. - S.P. )
= Rs. 10,00,000
- Rs. 9,72,000
Rs. 28,000
Hence, the man will face a loss of Rs. 28,000 or Rs. 0.28 lakh.
Hope you find the answer helpful.
