Question

The value of a car depreciates at the rate of 10% per year. A car which was bought three years back is now worth ₹ 473850. Its original price was

Answer 1

Current price of the car, P
o
​
=Rs360000
Rate of depreciation, 10% for first 2 years, 20% for the third year
Now, Let price after 2 years= P
Thus, P=P
o
​
(1+
100
R
​
)
T

P=360000(1+
100
−10
​
)
2

P=360000×
10×10
9×9
​

P=291600
After the third year, let the price be P
′

P
′
=P(1+
100
R
′

​
)
T

P
′
=291600(1+
100
−20
​
)
1

P
′
=
100
291600×80
​

P
′
=233280
Thus, the car will cost Rs 233280 after three years.

Answer 2

Answer:

The value of a car depreciates at the rate of 10% per annum. A car which was bought three years back is now worth RS4,73,850. What was its original price?