the cost of car purchased 2 years ago depreciates at the rate of 20% per year if it's present value is 315600 find its value after two years it's value when it was purchased 2 years ago
Answers
≡QUESTION≡
The cost of a car , purchased 2 years ago, depreciates at the rate of 20% p.a. If it's present value is 315600, find :
(I) it's value after 2 years.
(ii)it's value when it was purchased.
║⊕ANSWER⊕║
Let the original price be P
Time = 2 years
Rate = 20%
Current price = Rs. 315600
(1) It's value after 2 years:
Value of car after 2 years = 315600(1 - 20/100)²
= 315600(1 - 1/5)²
= 315600(4/5)²
= 315600(16/25)
= 5049600/25
= 201984
∴ Its value after 2 years ago = Rs. 201984.
(2) It's value when it was purchased =
315600 = P(1 - r/100)²
315600 = P(1 - 20/100)²
315600 = P(1 - 1/5)²
315600 = P(4/5)²
315600 = P(16/25)
315600 * 25 = 16P
7890000/16 = P
P = 493125.
Answer:
Here's your answer hope you understand
