Question

The value of a scooter depreciates in such a way that its value of the end of each year is 34of its value of the beginning of the same year. If the initial value of the scooter is Rs.40,000, what is the value at the end of 3 years?

Answer 1

Your answer is given below =》》》

Value remaining at the end of the year after meeting depreciation requirements is 3/4 of the value at the beginning of the year..

so depreciation will be 1 - 3/4 = 1/4

1/4 = 25%

Initial Value = 40000

value at the end of 3 years..

initial value(1 - rate of interest)^time

40000(1 - 25%)^3

40000(0.75)^3

40000(0.421875)

16875 is your answer