Question

Calculate the book value of a new maxi taxi costing $44000 after 3 years if it depreciates each year by 13%

Answer 1

$\underline{\underline{\sf{\maltese\:\:Given}}}$

$\sf \dashrightarrow \: Principal = Rs. \: 44000$

$\sf \dashrightarrow \: Rate \: of \: depreciation : 13 \%$

$\sf \dashrightarrow \: Time : 3 \: years$

$\underline{\underline{\sf{\maltese\:\:To \: find}}}$

$\sf \dashrightarrow \: Book \: value \: or \: Amount = \: ?$

$\underline{\underline{\sf{\maltese\:\:Solution }}}$

$\sf \dashrightarrow \: Amount = P \bigg( 1 - \dfrac{R}{100} \bigg)^{Time}$

$\sf \dashrightarrow \: Amount = 44000 \bigg( 1 - \dfrac{13}{100} \bigg)^{3}$

$\sf \dashrightarrow \: Amount = 44000 \bigg( \dfrac{100 - 13}{100} \bigg)^{3}$

$\sf \dashrightarrow \: Amount = 44000 \bigg( \dfrac{87}{100} \bigg)^{3}$

$\sf \dashrightarrow \: Amount = \cancel{44000} \bigg( \dfrac{658503}{ \cancel{1000000}} \bigg)$

$\sf \dashrightarrow \: Amount = 11 \bigg( \dfrac{658503}{ 250} \bigg)$

$\sf \dashrightarrow \: Amount = \dfrac{11 \times 658503}{ 250}$

$\sf \dashrightarrow \: Amount = \dfrac{7243533}{ 250}$

$\sf \dashrightarrow \: Amount = Rs. \: 28974.132$

$\small{ \bf Therefore, }$

$\sf \dashrightarrow \: Book \: value \: or \: Amount = \:Rs.\:28974.132$