A new scooter is valued at ₹1,20,000. At the end of each year, its value is reduced by 12% of its value at the start of the year. What will be its value (in₹) after 2 years?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 92,928.
Initial value = ₹1,20,000
After 1st year:
= 120000 × (1 − 0.12) = 120000 × 0.88 = ₹105,600
After 2nd year:
= 105600 × 0.88 = ₹92,928