Raja bought a car for₹ 6,40,000. It’s value depreciating every year at the rate of 10% p.a.
Find the price of the car after 3years.
Answers
Answer:
after depreciating 10% for 3 years the price of the car=
640000×90/100×90/100×90/100
=466560
Given:
✰ Raja bought a car for ₹6,40,000
✰ It’s value depreciating every year at the rate of 10% p.a.
✰ Number of years, n = 3 years
To find:
✠ Find the price of the car.
Solution:
As we are provided with the present value and the rate of depreciation, that is the annual change or decrease as percent.
If the cost price of a machine depreciates (decrease) by r% every year, then its value after n years can be obtained by the formula:
✭ Value after n years = Present value × ( 1 - r/100 )ⁿ ✭
Putting the values in the formula, we have:
➛ Price of the car = 6,40,000 × (1 - 10/100 )³
➛ Price of the car = 6,40,000 × ((100 - 10)/100 )³
➛ Price of the car = 6,40,000 × (90/100 )³
➛ Price of the car = 6,40,000 × ( 9/10 )³
➛ Price of the car = 6,40,000 × 9/10 × 9/10 × 9/10
➛ Price of the car = 640 × 9 × 9 × 9
➛ Price of the car = ₹466,560
∴ The price of the car after 3 years = ₹466,560
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