A car is purchased for Rs. 348000. Its value depreciates at 10% per an

1.	A car is purchased for Rs. 348000. Its value depreciates at 10% per annum during the first year and at 20% per annum during the second year. What will be its value after 2 years?
Answer» Present value of car, P = Rs.348000 Rate of depreciates for 1^st year, p = 10% Rate of depreciates for 2^ndyear, q = 20% Time, n = 2 years Now, Value = P × (1 - p/100) × (1 - q/100) = 348000 × (1 - 10/100) × (1 - 20/100) = 348000 × (1 - 1/10) × (1 - 1/5) = 348000 × 9/10 × 4/5 = 34800 × 9 × 4/5 = 6960 × 9 × 4 = 25056 ∴ Value of the car after 2 years is Rs.25056.

A car is purchased for Rs. 348000. Its value depreciates at 10% per annum during the first year and at 20% per annum during the second year. What will be its value after 2 years?

Answer»

Present value of car, P = Rs.348000

Rate of depreciates for 1^st year, p = 10%

Rate of depreciates for 2^ndyear, q = 20%

Time, n = 2 years

Now,

Value = P × (1 - p/100) × (1 - q/100)

= 348000 × (1 - 10/100) × (1 - 20/100)

= 348000 × (1 - 1/10) × (1 - 1/5)

= 348000 × 9/10 × 4/5

= 34800 × 9 × 4/5

= 6960 × 9 × 4

= 25056

∴ Value of the car after 2 years is Rs.25056.