Question

The value of a car depreciates annualy by 10 %.If the presnt value of a car be ₹650000,find its value after 2 years

Answer 1

If the depreciation is calculated by straight line methods then the answer will be.

For 1st year
650000 - 10% of 650000 =585000

So the value after 2 years will be.

585000 - 10% of 650000 = 520000

Answer 2

By simple method , we have ,

Present value = ₹ 650000

Decrease in first year = 10% = 10% of 650000=10/100*650000=₹65000

So,value after first year = ₹650000-65000=₹585000

Decrease in second year = 10% = 10% of 585000 = ₹58500

Value after second year = 585000 - 58500 = ₹526500

Answer : Hence , the car's value of two years is ₹526500