Question

Let’s assume you bought a new car with Tk. 3,500,000. The car depreciates in value by 40%
after the first year, 20% after the second year, and 10% after the third year onward. What is the
average rate of depreciation per year after three years? Therefore, what will be the value of the
car after three years of use?

Answer 1

Answer:

3000002737737388383838738

Answer 2

Given:

Cost of car = 35,00,000

Depreciation for 1st year = 40℅

Depreciation for 2nd year = 20℅

Depreciation for 3rd year = 10℅

To find:

1. The average rate of depreciation per year after three years
2. The value of the car after three years of use

Solution:

• Average refers to the mean of numbers which can be calculated by dividing the total of the numbers by the total numbers

The average rate of depreciation per year after three years = 40℅ + 20℅ + 10℅ / 3

= 23.33℅

• Depreciation is calculated on fixed assets whose value depreciates over the period.

The value of the car after one year :

35,00,000 × (1 - 40℅) = 21,00,000

The value of the car after two years :

21,00,000 × (1 - 20℅) = 16,80,000

The value of the car after three years :

16,80,000 × ( 1 - 10℅) = 15,12,000

The value of the car after three years of use will be 15,12,000