Question

The value of a car depreciates at a rate of 10% per year. If the cost price of the car is ₹5,60,000, calculate its price after 2 years.​

Answer 1

Step-by-step explanation:

Correct option is D)

Present Value A=Rs.52,488

Depreciation rate r=10% per annum

Time t=4 years

Let initial value be P

We know the formula, A=P(1−

100

r

)

t

Substituting the given values, we get.

52,488=P[1−

100

10

]

4

52,488=P(0.9)

4

P=

0.6561

52488

P=Rs.80,000

Answer 2

Answer:

The value of the car after depreciation for two years = Rs. 4,53,600

Step-by-step explanation:

Rate of Interest = 10%

Time = 2 years

Present value, P = Rs. 560000

$Amount = P(1-\frac{10}{100} )^2\\\\==> Amount = 560000*(1-\frac{10}{100} )^2\\\\==> Amount = 560000*\frac{90}{100}*\frac{90}{100} \\\\==> Amount = 453600$

Hence, The value of the car after depreciation for two years = Rs. 4,53,600