The price of a car depreciates in the first year by 25% in the second year by 20% in the third year by 15% and so on. The final price of the car after 3 years, if the present cost of the car is Rs. 10,00,000:Options7, 80, 0006, 90,0001, 70,0005, 10,000
Question
The price of a car depreciates in the first year by 25% in the second year by 20% in the third year by 15% and so on. The final price of the car after 3 years, if the present cost of the car is Rs. 10,00,000:Options7, 80, 0006, 90,0001, 70,0005, 10,000
Solution
The depreciation of the car's value can be calculated year by year.
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In the first year, the car depreciates by 25%. So, the value of the car after the first year would be 75% of the original value.
10,00,000 * 75/100 = Rs. 7,50,000
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In the second year, the car depreciates by 20%. So, the value of the car after the second year would be 80% of the value after the first year.
7,50,000 * 80/100 = Rs. 6,00,000
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In the third year, the car depreciates by 15%. So, the value of the car after the third year would be 85% of the value after the second year.
6,00,000 * 85/100 = Rs. 5,10,000
So, the final price of the car after 3 years would be Rs. 5,10,000.
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