the price of Chevrolet Spark depreciates by 10% every year. If i bought it for 3.6 lakhs in the year 2011, by what percent would its price have fallen in 2015
Answers
Answer:
price have fallen = 34.39 %
Step-by-step explanation:
the price of Chevrolet Spark depreciates by 10% every year
bought it for 3.6 lakhs in the year 2011
3.6 lakhs = 360000
Price in 2012 = 360000 (1 - 10/100) = 324000
Price in 2013 = 324000 (1 - 10/100) = 291600
Price in 2014 = 291600(1 - 10/100) = 262440
Price in 2015 = 262440(1 - 10/100) = 236196
Price dropped till 2015 = 360000 - 236196 = 123804
% Drop = (123804)/(360000) * 100 = 34.39 %
price have fallen = 34.39 %
Use the method of successive percentage as a short trick
Assume the Chevrolet Spark to be 100 as it depreciated every year
1st year 100 - 10 = 90
2nd year use that 90 and remove 10% of that
90-10% = 81
3rd year use 81 -10% = 72.9
4th year 72.9 -10% = 65.61
The difference of each year is 100- 90 = 10
90-81 = 9
81 - 72.9 = 8.1
72.9 - 65.61 = 7.29
Add all of these values 10+9+8.1+7.29 = 34.39
