Question

Rishu purchased a honda city 4 years ago for 4 lakhs.its value depreciated each year at the rate of 25 percent per annum .what us present value of the car

Answer 1

Here is your answer.. hope, this will help

Answer 2

Answer:

Rs.126562.5

Step-by-step explanation:

Given :Rishu purchased a honda city 4 years ago for 4 lakhs.

Its value depreciated each year at the rate of 25 percent per annum .

To Find :.What us present value of the car ?

Solution:

Principal = 400000

Rate of decrease = 25% = 0.25

Time = 4 years

Amount after 4 years = $P(1-r)^t$

                                    = $400000(1-0.25)^4$

                                    = $126562.5$

Hence Its present value is Rs.126562.5