Question

PAGE No DATE: 1201 a) The value of a car depreciates by 12.5%. every year. What will be the value of the after three years if the price of car is 350000

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Answer 1

Step-by-step explanation:

Current price of the car, Po=Rs360000

Rate of depreciation, 10% for first 2 years, 20% for the third year

Now, Let price after 2 years= P

Thus, P=Po(1+100R)T

P=360000(1+100−10)2

P=360000×10×109×9

P=291600

After the third year, let the price be P′

P′=P(1+100R′)T

P′=291600(1+100−20)1

P′=100291600×80

P′=233280

Thus, the car will cost Rs 233280 after three years.