Question

The annual cost of a company is Rs 500,000 at the moment. It is expected that due to re-engineering the cost will reduce by 20% per annum for next two years. Compute the annual cost for fourth year from now. (a) Rs. 320,000 (b) Rs. 163,840 (c) Rs. 200,000 (d) Rs. 260,000​

Answer 1

Answer:

1-320000isthe correct answer

Step-by-step explanation:

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Answer 2

right answer is 320000 rupees (a)

because,

It is stated here that the cost will be reduced by 20% in the first 2 years, that is, the total amount is 500,000 rupees. If you want to determine the meaning of 20% of this, you have to look at 10% of it first. (500000 ÷ 10) = 50000 rupees. 50000 • 2 = 100000 rupees. So after 2 years its value will decrease (500000-100000) = 400000 rupees. If the remaining 2 years and the same rate decreases (20% in 2 years), this time the total value is Rs400000, This is 10% of 400000 rupees = (400000 ÷ 10) = 40000 rupees. That money is 40,000 • 2 = 80,000 in two years. Then the total amount will be (400000-80000) = 320000 rupees. (A).

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