the scooter is bought for Rs 32000. Its value depreciats at 10%per annum .what will be its value after 2 years.
Answers
The time Period after which
interest is added each time to form a new principal is called the conversion
period and the interest so obtained is called a compound interest.
If the conversion period
is 1 year then the interest is said to be compounded annually.
The main difference
between the simple interest and compound interest on a certain sum is that in
the case of simple interest the principal remains constant throughout wheras in
the case of compound interest it goes on changing periodically.
The above formula is the interest compounded
annually
A= P(1+r/100)^n
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Given:
Principal (P) =₹ 42,000,
Rate of Interest (R) = 8%, Time (n) =
1 years
Amount (A) = P(1-R/100)^n
[Value depreciated]
A= 42000(1-8/100)¹
A=42000(1-2/25)
A= (42000×23)/25
A= 1680× 23
A= ₹ 38640
Hence, the value of the scooter after one year = ₹ 38640.
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Hope this will help you....