Question

The cost of a refrigerator is Rs 9000.Its value depreciates. at therate of 5% every year.Find te total depreciation in its value over two years.

Answer 1

Heya ☺

Given that

Cost of refrigerator = ₹9,000

Rate of depreciation = 5 % p.a.

Time period = 2 years

Solution

Value of refrigerator depreciates over 2 years = P(1-R/100)^n

= 9,000(1-5/100)^2

= 9,000(100-5/100)^2

= 9,000(95/100)^2

= 9,000(19/20)^2

= 9,000 × 19/20 × 19/20

= 13,005/2

= ₹6,502.50




Thanks