Question

A scooter was bought in April 2005 for RS 42,000.if its value falls by 10 percent every year, what will it's value be in April 2007 ?

Answer 1

42000(90/100)(90/100)= 420*9*9= Rs 34020

Answer 2

On April 2005 , value is RS 42,000

On April 2006 , now with 10% fall,
Value = 42000 - (42000 * 10) / 100
= (42000*90)/100
= 37,800

On April 2007 , now with 10% fall again,
Value = 37800 - (37800 * 10) / 100
= (37800*90)/100
= 34,020

So, value of scooter in April 2007 will be
RS 34,020