In April 2019, Dinesh purchased a new car for Rs 7,00,000 and sold it in April 2022 at its depreciated cost. If the rate of depreciation in the first year is 20%, 15% in the second year and 10% every year thereafter, what amount of money will Dinesh get as the selling price?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Rs 4,28,400.
In April 2019, the cost price of a car = Rs 7,00,000
The rate of depreciation in the first year is 20%, 15% in the second year, and 10% every year thereafter.
According to the question;
In April 2022,
The depreciation cost of selling = 7,00,000 × × ×
⇒ 428400
Hence the amount of money got by Dinesh on selling the car is Rs 4,28,400.