Question

The value of a scooter depreciates in such a way that its value of the end of each year is 3/4 of 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 ?
a. Rs.13435
b. Rs.23125
c. Rs.19000
d. Rs.16875; The value of a scooter depreciates in such a way that its value of the end of each year is 3/4 of 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 ?; a. Rs.13435; b. Rs.23125; c. Rs.19000; d. Rs.16875

Answer 1

Answer: Rs.16875

Step-by-step explanation:

The question says that the value becomes 3/4 of the value at the start of every year. This means that the value reduces by 1/4 i.e., 25% every year.

So using the compound interest formula, we can calculate this.

Formula=P[1-R/100]^n

=40000[1-25/100]^3

=40000[75/100]^3

=40000[3/4]^3

= Rs.16875

Thanks for asking. Hope it helps. If any doubts, please do ask.

Pls mark this Brainliest.