Question

the price of a mobile phone depreciates at the rate of 6 %.If the current cost price is 20000 what will be the price after 3 years

Answer 1

In the first value the price depreciates by = rs.(20000*6/100)

                                                                     = rs. 1200

So, the value for the second year = rs. (20000-1200)

                                                        = rs. 18800

In the second year the value depreciates by = rs.(18800*6/100)

                                                                          = rs. 1128

So, the cost of the mobile phone after 3 years = rs.(18800-1128)

                                                                              = rs. 17672

(Ans): rs.17672

Answer 2

$\huge \underline \mathfrak {Solution:-}$

Cost of phone (P) = 20000 rupees

It will be depreciated for 2 years at 6% per year.

Time = 3 years

Rate of depreciation = 6 %

Amount

$= P {(1 - \frac{Rate}{100}) }^{Time} \\ \\ = 20000 {( 1-\frac{6}{100}) }^{3} \\ \\ = 20000 {( 1- 0.06) }^{3} \\ \\ = 20000 \times {0.94}^{3} \\ \\ =16611.68$

After 3 years it's cost will be 16611.68 rupees.

Depreciation = (20000-16611.68) rupees

Depreciation = 3388.32 rupees