Question

The cost of a car was ₹ 4,50,000 in January, 2010. If the rate of depreciation is 15% for the first year and 10% for the subsequent years, find its value after 3 years.

Answer 1

Depreciation:

The relative decrease in the value of an article over a period of time is called its depreciation. Depreciation per unit of time is called the rate of depreciation. The value at any time is called depreciated value.



Cost of a car in January 2010 (Vo)=₹ 450000


Rate of depreciation in the first year(R1)= 15%


Rate of depreciation for the subsequent years(R2)(R3)= 10%


Value of the car after 3 years (V)=


Vo( 1-R1/100)  (1-R2/100) ( 1-R3/100)




[450000(1- 15/100) × ( 1- 10/100) × ( 1- 10/100)]


[450000 (1- 3/20) (1-1/10) (1-1/10)]


[450000 ( 20-3/20) ( 10-1/10) ( 10-1/10) ]


450000 × 17 /20× 9/10 × 9/10


225× 81×17


₹ 3,09,825



Hence, its value after 3 years ₹ 3,09,825


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Hope this will help you.........