The cost of a car, purchased two years ago, depreciates at the rate of – InterviewSolution

1.	The cost of a car, purchased two years ago, depreciates at the rate of 20% every year. If its present value is ₹2,52,480, find: (i) It’s purchase price (ii) It’s value after 1 year.
Answer» i) P (1 - 20/100)^2 = 252480P = 252480 * 25/16 = 394500ii) From ANSWER number 1:-Price 2 years ago = 394500Let x be price before one year394500(1 - 20/100) = x394500 * 4/5 = XX = 315600

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