Ranjan bought a new car for rs. 395000. After using it for two years, he sold it out. If its value depricted 20% and 15% annually respectively , what did he get for the car.
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Hey!
Here is your answer...
CP of car= Rs.395000
Depreciation for first year=20%
Use Compound interest formula to find amount
Amount (during depreciation) = P(1-(R/100))^N
=395000×(1-(20/100))^1
(1 means one year)
=395000×((100-20)/100)
=395000×(80/100)
=316000
Now to find for second year.
New CP of car=316000
Depreciation for second year=15%
Again, use same formula.
Amount (during depreciation) = P(1-(R/100))^N
=316000×(1-(15/100))^1
=316000×((100-15)/100)
=316000×(85/100)
=268600
So Ranjan sold the car for Rs.268600
Here is your answer...
CP of car= Rs.395000
Depreciation for first year=20%
Use Compound interest formula to find amount
Amount (during depreciation) = P(1-(R/100))^N
=395000×(1-(20/100))^1
(1 means one year)
=395000×((100-20)/100)
=395000×(80/100)
=316000
Now to find for second year.
New CP of car=316000
Depreciation for second year=15%
Again, use same formula.
Amount (during depreciation) = P(1-(R/100))^N
=316000×(1-(15/100))^1
=316000×((100-15)/100)
=316000×(85/100)
=268600
So Ranjan sold the car for Rs.268600
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