Question

Jaya bought a car rs. 3,50,000 four years ago if the value of the car depreciates over time at a fixed rate of 10%per annum then what will be the present worth of the car

Answer 1

350000*0.9*0.9*0.9*0.9 = 229635

Answer 2

Answer:

Present value of the Car is Rs. 2,29,635.

Step-by-step explanation:

Given: Price of Car 4 year ago, P = Rs. 350000

Rate of Depreciation , R = 10%

Time, T = 4 years.

To find: Present value of Car, A

We use the following formula:

$A=P\times(1-\frac{R}{100})^n$

From given detail, n = 4

So, We have

$Present\:Amount\:of\:car=350000\times(1-\frac{10}{100})^4$

                                    $=350000\times(\frac{9}{10})^4$

                                    $=229635$

Therefore, Present value of the Car is Rs. 2,29,635.