Question

The cost of a car purchased 2 years ago ,depreciate at the rate of 20percent every year.If the present value of car is rupee 315600 find( i) its purchase price.and (ii) its value after 3rd year​

Answer 1

Step-by-step explanation:

A = P [1 - r/100]ⁿ

here A = 315600 , r = 20%, n = 2 years, P = ?

315600 = P [1 - 20/100]²

315600 = P [1 - 1/5]²

315600 = P [4/5]²

315600 = P × 16/25

P = 315600 × 25/16

P = 19925 × 25

P = 4,93,125

car was bought at Rs 4,93,125/=

2) its value after 3 years

A = 315600 [ 1 - 20/100 ]¹

A = 315600 × 4/5

A = 252480

value at the end of 3rd year is Rs 2,52,480/=