The current value of a car is Rs.8,50,000 and its value is depreciating at the rate of 10% per annum. What will be its value (in Rs.) after 4 years?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 5,57,685.
Let the value of the car after 4 years be a
⇒ a = 850000 × 90% × 90% × 90% × 90%
⇒ a = 850000 × 90/100 × 90/100 × 90/100 × 90/100
⇒ a = 85 × 9 × 9 × 9 × 9
⇒ a = 85 × 81 × 81
⇒ a = 557685
Hence, the price of a car after 4 years will be Rs.5,57,685