Question

sonika bought land for rs 550000. the value of the land depreciates at the rate of 5% every six months . what is the value of the land after 2 year

Answer 1

The value of the land after 2 years will be 440000..

Answer 2

Answer:

The value of land after 2 years is rupees 447978.44.

Step-by-step explanation:

The value of land is defined by the formula

$P=P_0(1-\frac{r}{n})^{nt}$

Where, P₀ is initial value of land, r is rate of depreciation, n is time period in a year and t is number of years.

The initial value of land is 550000. The rate of depreciation is 5% every 6 months, so the value of n is 2.

$P=550000(1-0.05)^{2(2)}$

$P=550000(0.95)^{4}$

$P=447978.4375$

$P\approx 447978.44$

The value of land after 2 years is rupees 447978.44.