Question

The value of a car depreciates 20% every year. if after two years, the price of a car is 420000, find the original price of a car

Answer 1

original price is 268800

Answer 2

If Vo is the value of an article at a certain time and R% per annum is the rate of depreciation, then the value Vn at the end of n years is given by

Vn = Vo (1-R/100)^n


Given :

R= 20%, n= 2years, Vn= ₹420000

Vn = Vo (1-R/100)^n

420000= Vo (1-20/100)²

420000= Vo (1-1/5)²

420000= Vo (4/5)²

42000= 16Vo/25

Vo= (420000 × 25)/16

Vo= 26250×25

Vo= ₹ 656250

Hence,the original price of a car is ₹ 656250.

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Hope this will help you...