Question

the cost of a car purchased two years ago depreciated at the rate 20% every year if its present worth is 315600 find its purchase price

Answer 1

let the original price be x

time 2 years

rate 20%

current price 315600

the depreciation was of 20 % so the value was 80% of the original value

x * 80/100 * 80/100 = 315600

x = 315600*25 / 16

x = 493125

purchase price is 493125

Answer 2

Rate = 20% p.a

Amount = Rs 315600

Time = 2 years

Principal = ?

Let the principal be Rs P

• Formula = A = p(1+r/100)^n

( i )  315600 = p(1+20/100)²

315600 = p(1+1/5)²

315600 = P×4/5×4/5

5×5×315600/4×4 = P

493125 = P

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