Mr Durrani bought a plot of land for Rs.1,80,000 and a car for Rs.3,20,000 at the same time the value of the plot of land close uniformly at the rate of 30% per annum while the value of car depreciates by 20% in the first year and by 15% per annum thereafter if he sells the plot of land as well as the car after three years what will be his profit or loss
Answers
Answer:
Solution :-
Purchase Price of the plot of land = Rs.180000
Appreciation in Price of land every year = 30 %
Price of the plot of land after 1st year = 180000 + (30*180000)/100
= 180000 + 54000
= Rs. 234000
Price of the plot of land after 2nd = 234000 + (234000*30)/100
= 234000 + 70200
= Rs. 304200
Price of the plot of land after 3rd year = 304200 + (304200*30)100
= 304200 + 91260
= Rs. 395460
So, after 3 years price of the plot of land will be Rs. 395460 (which is also its selling price).
Purchase Price of the car = Rs. 320000
Depreciation in the 1st year = 20 %
Price excluding depreciation = 320000 - (320000*20)/100
= 320000 - 64000
= Rs. 256000
Depreciation in 2nd year = 15 %
Price excluding depreciation = 256000 - (256000*15)/100
= 256000 - 38400
= Rs. 217600
Depreciation in the 3rd year = 15 %
Price excluding depreciation = 217600 - (217600*15)/100
= 217600 - 32640
= Rs. 184960
Reduced price of the car after 3 years (which is also its selling price) = Rs. 184960
Total money spent on plot of land and car = 180000 + 320000
= Rs. 500000
Selling Price of plot of land = Rs. 395460
Selling price of the car - Rs.184960
Selling price of both land and car = Rs. 395460 + 184960
= Rs. 580420
Profit = Selling - Cost price
⇒ 580420 - 500000
Profit = Rs. 80420
So, Mr. Durani earned Rs. 80420 as profit.