Question

Shyam purchase a television 2 yrs ago, and its value is depreciating at a rate of 20% per annum. If it's present value is ₹125000, find
1. Its value after 3 yrs
2. Its value at the time of purchase

Answer 1

present cost of television = 125000

1. Its value after 3 years

Solution :-

Value of television after 1 year = 20% of 125000

=> 20/100×125000

=> 125000/5

=> 25000

New cost = 125000-25000 = 100000

Cost after 2 year = 20% of 100000

=> 20/100×100000

=> 100000/5

=> 20000

New cost = 100000 - 20000 = 80000

Cost after 3 years = 20% of 80000

=> 20/100×80000

=> 80000/5

=> 16000

New cost = 80000-16000

=> 64000

Cost after 3 years is 64000

2. its value at the time of purchase

Solution :-

We have to find the value of television before 2 years

Value of television before 1 year = 20% of 125000

=> 20/100×125000

=> 25000

New cost = 125000+25000 = 150000

Value of television before 2 years = 20% of 150000

=> 20/100×150000

=> 150000/5

=> 30000

New cost = 150000+30000 = 180000

Cost of television at the time of purchase is Rs. 1,80,000 .

Hope it will help ....