Question

Ranjan purchased a maruti van for rs. 1,96,000 and the rate of depreciation is 1427% per annum. Find the value of the van after two years.

Answer 1

$\underline \bold{Solution:-}$

Cost of van (P) = 196000 rupees

Time = 2 years

Rate of depreciation =100/7 %

Amount

$= p {(1 - \frac{rate}{100}) }^{time} \\ \\ = 196000 {( 1-\frac{100 /7}{100}) }^{2} \\ \\ = 196000 {( 1- \frac{1}{7}) }^{2} \\ \\ = 196000 \times {6/7}^{2} \\ \\ =144000$

After 2 years it's cost will be 144000 rupees