Question

A radio costing Rs.6000 is depreciated per year and 2 years later its price becomes to Rs.5415. Find the rate of depreciation in percent.

Answer 1

Answer:

Initial Value = S = 6000

Value after 2 years = R = 5415

Duration = D = 2 years

i = rate of depreciation

R = S(1 - i)^D

5415 = 6000(1 - i)^2

5415/6000 = (1 - i)^2

0.9025 = (1 - i)^2

√(0.9025) = 1 - i

0.95 = 1 - i

i = 1 - 0.95

i = 0.05

i = 5%