A bike is purchased for ₹50,000. Its rate depreciates at 10% annually. In how many years will its value be ₹36,450?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 3
The equation formed will be
50000 × {1 - 90/100}n = Final value
⇒ where n is the number of years.
So, 50000 × (9/10)n = 36450
⇒ (9/10)n = 729/100
We can see, n = 3