Question

A plot of land was purchased for $5,62,500 and its cost depreciates every year by 8%. Find the cost after 2 years.

Answer 1

Answer:

A plot of land was purchased for $5,62,500 and its cost depreciates every year by 8%. Find the cost after 2 years.

Answer 2

Answer: it is just like a simple interest problem

The answer is $ 4,72,500

Step-by-step explanation:

Assume p = $5,62,500 , t= 2 , r= 8/100

Depreciation cost = p*t*r / 100

Depreciation cost = 562500× 2 × 8/100

On solving we get $90000

Therefore total reduced cost = $5,62,500 - 90,000 = $4,72,500