Question

Ram purchased an old TV for Rs 16,000 if the value of the two year in 14440 find the TV the rate of​

Answer 1

Answer:

It is given that

Present value = 16000

Value after 2 years = 14440

Consider r% p.a. as the rate of depreciation

We know that

A/P=(1−r/100)

n

Substituting the values

14440/16000=(1−r/100)

2

By further calculation

361/400=(1−r/100)

2

(19/20)

2

=(1−r/100)

2

We can write it as

1−r/100=19/20

So we get

r/100=1−19/20=1/20

By cross multiplication

r=1/20×100=5%

Hence, the rate of depreciation is 5%