Question

If the value of a car is depreciated by 9% of the current value annually, what will be its estimated value at the end of 8 years, if it current value is ₹200000

Answer 1

Answer:

56,000/-

Explanation:

A car is always gives us Liabilities and never be an Asset as we think.

Answer 2

Estimated value will be - Rs. 94050.5

Estimate value for the deprecating amount at 9% rate can be calculated by the formula mentioned as follows-

V = P(1-R/100)^T

In this equation, p represents principal amount, r represents rate of interest, t is time and V is estimated value.

Values given in question are -

P is ₹200000, r is 9%, t is 8 years. Keeping the values in equation-

V = 200000(1-9/100)^8

V = 94050.5 Rs.

Hence, estimated value will be - Rs. 94050.5