Soniye bench plot of land for 5.50.000. If its value appreciates by 5% every year, what will
be the value of the land after 3 years!
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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
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