Question

The cost of a car, purchased two years ago, depreciates at the rate of 20%
every year. If its present value is ₹2,52,480, find:
(i) It’s purchase price
(ii) It’s value after 1 year.

Answer 1

Answer:

i) P (1 - 20/100)^2 = 252480

P = 252480 * 25/16 = 394500

ii) From Answer number 1:-

Price 2 years ago = 394500

Let x be price before one year

394500(1 - 20/100) = x

394500 * 4/5 = x

x = 315600