Manish bought an air conditioner for Rs.46,875, its value is depreciating at the rate of 8% yearly. What will be the price of the air conditioner after 3 years?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Rs.36,501
Initial price of the air conditioner = Rs. 46,875
Rate of depreciation = 8% per year
Number of years = 3
Present value = Initial value[(100 - Rate)/100]Time = 46875[(100 - 8)/100]3 = 46875(0.92)3 = 46875(0.778688) = Rs. 36501