Question

A motor cycle was bought at Rs 50000. its value depriciates at 8% p.a. find its value after 2 years.

Answer 1

Principal =Rs 50000
depriciates rate =8%
time=2 years
amount =P(1_ R/100)t
Amount = 50000(1- 8/100)2
= 50000×92/100×92/100
amount =Rs 42320
the value after 2 years =Rs 42320

Answer 2

Given, Principle = 50,000

Rate of interest = -8%

Number of compoundings = 2


A = P ( 1 + R/100)^n.

A = 50,000(1 -8/100)²

A = 42320 Rs

The value of motor cycle after 2 years is 42320 Rs.