Question

A motor bike costs rupees 75,000 if it depreceates at the rate of 10% per annum , what is its value after 3 years?

Answer 1

Cost of vehicle =175000

Depreciation for first year =100/20×175000=35000

Cost of vehicle after first year =175000−35000=140000

Depreciation for second year =10/020×140000=28000

Cost of vehicle after second year =140000−28000=112000

Depreciation for third year =100/20×112000=22400

Total depreciation after 3 years =35000+28000+22400=85400

Hence, the answer is Rs. 85,400.