Question

A motorcycle is bought at rupees 160000 it's value depreciates at the rate of 10% p.a. find its value after first 1 year second 2 year

Answer 1

GIVEN,

principal=160000, rate of interest=10% p.a.

TO FIND,

the depreciated value of the motorcycle after 1 and 2 years.

SOLUTION,

the value of the motorcycle after 1 year can be calculated by

$A=P[1-\frac{R}{100} ]^{T}$

$A= 160000[1-\frac{10}{100} ]^{1} \\\\A=160000*\frac{90}{100} \\\\A= 144000$

∴After one year the value of the motorcycle depreciates to ₹144000.

Now the value of motorcycle after 2 years, we get,

$A=P[1-\frac{R}{100} ]^{2}$

$A= 160000[1-\frac{10}{100} ]^{2} \\\\A= 160000[\frac{90}{100} ]^{2}\\\\A= 160000[\frac{9}{10} *\frac{9}{10}]\\\\A= 160000*\frac{81}{100} \\\\A= 129600.$

HENCE THE VALUE OF THE MOTORCYCLE AFTER 1 YEAR IS ₹144000

AND AFTER 2 YEARS IS ₹129600.