A new bike was bought at ₹98,000 in 2004. Its value depreciated at the rate of
11% p.a. Find its value after 4 years.
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Answer:
Step-by-step explanation:
First off , let's see what's given.
Principal = ₹98, 000
Time = 4 years
Rate = 11%
Plug the values into the formula
A = P(1 - r/100)^n
Notice the (-) sign here , it's there because it's getting depreciated .
A= 98,000( 1- 11/100)^4
A= 98,000(89/100)^4
A= ₹61, 487.39
Hence that's the value of the bike after 4 years .
Hope this helps you.
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