Question

sonika bought land for rupees 550000 the value of the land depricates at the rate of 5percent every six months what is the value of the land after 2 years
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Answer 1

Step-by-step explanation:

We will simply apply the formula of Compound Interest here but instead of adding the rate we will subtract it as the value is to be depreciated.

Solution:

Principal ( P ) = ₹ 550000

Rate of depreciation ( R ) = 5 % / 6 months = 5% per half year

Time ( T ) = 2 years

We know,

Amount = P ( 1 - R / 200 ) ^ 2T

Value after 2 years = 550000 ( 1 - 5/200 ) ^ 4

Value after 2 years = 550000 ( 1 - 1/40 ) ^ 4

Value after 2 years = 550000 ( 39 / 40 ) ^ 4

Value after 2 years = 550000 * 39/40 * 39/40

Value after 2 years = 550000 * 1521 / 1600

Value after 2 years = 5500 * 1521 / 16

Value after 2 years = ₹ 5,22,843.75

Answer 2

Step-by-step explanation:

price of land = 550000

rate of depreciation= 5% per six months

no.of years = 2yrs. = 4 half year

amount of depreciation for half year = 5% of 550000= RS. 27500

so, amount of depreciation for 4 half years = 4× 27500

= 110000

amount of land becomes = 550000 - 110000

= 440000