Question

Jaya brought a car worth 3,50,000 four years ago and the value of the car depreciates over time at a fixed rate of 10% per annum what will be the present cost of the car

Answer 1

40/100 came from 4 years multiplied by 10 percent

Answer 2

$\bold{Rs. 229635}$ is the present cost of the car.

Given:

Price of the car bought four years ago = $Rs. 3,50,000$

Depreciation  =10%

To find:  

Present cost of the car = ?

Solution:

The cost of the car bought by Jaya four years ago, was priced at $Rs. 350000$

The value of the car depreciates overtime; the fixed rate of decrease is 10% per annum

The present cost of the car, is priced at Rs. P

The time of depreciation, is denoted by n

Therefore, the price of P $=350000 \times\left(1-\frac{10}{100}\right)^{n}=350000 \times\left(\frac{90}{100}\right)^{4}=229635$

Hence, the price of depreciation stands after $4$ years is equal to $Rs. 229635.$