The value of a flat worth Rs600000 is depreciating at the rate of 10% per annum. In how many years will its value be reduced to Rs437400?
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the rate of depreciation= i = 10%
no.of years =n= ?
value at the end of n years = 437400
P = value at the beginning = 600000
P(1-i)^n = A
600000(1-10/100)^n = 437400
600000(1- 0.1)^n = 437400
600000(0.9)^n= 437400
600000/437400 = (0.9)^n
1.3717 = (0.9)^n
(0.9)^3 = (0.9)^n
bases are equal.equate the powers
n= 3 = no.of years
no.of years =n= ?
value at the end of n years = 437400
P = value at the beginning = 600000
P(1-i)^n = A
600000(1-10/100)^n = 437400
600000(1- 0.1)^n = 437400
600000(0.9)^n= 437400
600000/437400 = (0.9)^n
1.3717 = (0.9)^n
(0.9)^3 = (0.9)^n
bases are equal.equate the powers
n= 3 = no.of years
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