Question

The value of a flat worth 5,00,000 is depreciating
at the rate of 10% p.a. In how many years will its
value be reduced to 3,64,500 ?​

Answer 1

Answer:

• 3 years.

Step-by-step explanation:

Given

• Principal (P) = 5,00,000
• Rate of interest (R) = 10 % p.a.
• Amount (A) = 3,64,500
• Depreciation takes place here

To find

• Time period

Solution

➤ Amount = Principal × (1 - r/100)ᵀ

Substituting we get,

364500 = 500000 × (1 - 10/100)ᵀ

364500/500000 = (100 - 10/100)ᵀ

729/1000 = (90/100)ᵀ

(9/10)³ = (9/10)ᵀ

T = 3 years