Question

If an automobile depreciates in balues 5% every year, at the end of 4 years what is the value of automobile purchased for rs12000

Answer 1

The value of automobile will be Rs.9600

Step-by-step explanation:

Depriciation =4years (5%of 12000)

=4×600

=2400

New value =original cost -depriciation

=12000-2400

=9,600