Question

ahmed purchase an old scooter for rs 16000 if the cost of scooter after two years depreciate to rs 14440 find he rate of depreciation

Answer 1

Present price = Rs.16000
=> V = Vo (1-r/100)^n
=>14440 = 16000 (1-r/100)^2
=>14440/16000 = (1-r/100)^2
=>(38/40)^2 = (1-r/100)^2
=>38/40 = 1-r/100
=>1-38/40 = r/100
=>r = 2/40 x 100 = 5%
Hence,the rate of depreciation = 5%

Answer 2

so answer is 8.5% of depreciation in 2 years