Question

A new car costs Rs 480000. Its price depreciates at the rate 8% a year during first two years and at the rate of 20% a year thereafter. What will be price after 3 years?
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Answer 1

SOLUTION :

C.P. Of the car = Rs. 480000
Depreciation rate for first 2 years = 8%
Depreciation rate for a year thereafter
= 20%
Price after 2 years / Amount
= P(1+R/100) raised to the power n
= 480000(1+8/100)raised to the power 2
= 480000(108/100)raised to the power 2
= 480000*108/100*108/100
= 559,872
And,
Price after a year thereafter
= P*R*T/100
=> 559872*20*1/100
=> Rs. 111974.4 ( ANSWER )