Question

Rahul bought a fridge for 55000 rupees. After one year, the value of the fridge depreciated by 5%. What is the value of the fridge after one year?
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Answer 1

Step-by-step explanation:

Soln,

the original cost of fridge (P) = Rs. 55000

the time period for depreciation (t) = 1 year

Rate of depreciation (R) = 5 per.

We know

(P1) Price after 1 year= P [ 1 - R / 100 ] ^t

or, P1 = 55000 [ 1 - 5/100 ]^1

Therefore P1 = Rs. 52250