Question

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!​

Answer 1

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