Question

✴️CONTENT QUALITY ANSWER✴️


The cost of a car , purchased 2 years ago, depreciates at the rate of 20% p.a. If it's present value is 315600, find :
(I) it's value after 2 years.
(ii)it's value when it was purchased.

❌idiotic answers❌ will be immediately reported........

Answer 1

This is like compound interest

the formula of compound interest is applicable here

( I ) value after 2 years

p = 315600

r = 20 %

n = 2

A = ?

A = p ( 1 + r/100 ) ^n

= 315600 ( 1 + 20/100 )^2

= 315600 × 6/5 × 6/5

= 12624 × 36

= 454464

C.I . = 454464 - 315600

= 138864

it's value after two years reduces by 138864

so it's value after two years = 315600 - 138864

= 176736

so it's value after two years is 176736

so it's value after 2 years is Rs 176736

( ii ) value when purchased

A = 315600

r = 20%

n = 2

p = ?

A = p( 1 + r/100 )^n

315600 = p × 6/5 × 6/5

p = 315600 × 25/36

please do this calculation you will get your required answer

Answer 2

NOTE: If the constant rate of depreciation is R% per annum, then the value after 't' years = V(1 - R/100)^t.


(1) It's value after 2 years:

Value of car after 2 years = 315600(1 - 20/100)^2

                                           = 315600(1 - 1/5)^2

                                           = 315600(4/5)^2

                                           = 315600(16/25)

                                           = 5049600/25

                                           = 201984


Therefore Its value after 2 years ago = 201984.




(2) It's value when it was purchased.

315600 = P(1 - r/100)^t

315600 = P(1 - 20/100)^2

315600 = P(1 - 1/5)^2

315600 = P(4/5)^2

315600 = P(16/25)

315600 * 25 = 16P

7890000/16 = P

493125.


Therefore the cost at which the car was purchased 2 years ago is 493125.




Hope this helps!