Question

The cost of a car, purchased 2 years ago, depreciates at the rate of 20 % per annum. If its present value is Rs 315680, then its value 2 years ago was ​

Answer 1

Answer:

161587.20

Step-by-step explanation:

It is given that

Present value of car = 315600

Rate of depreciation (r) = 20%

(i) We know that

Value of car 2 years ago = A÷(1−r/100)

n

Substituting the values

=315600÷(1−20/100)

2

By further calculation

= 315600×5/4×5/4

= 493125

(ii) We know that

Value of car after 3 years = 315600×(1−20/100)

3

By further calculation

= 315600×4/5×4/5×4/5

161587.20