The present value of a house is Rs. 46,40,000. If its value depreciates at the rate of 5% per annum, then the value of the house after 3 years will be:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. Rs. 39,78,220.
Calculations:
Let the price of the house after 3 years be x.
The value of house = 4640000
Decrease in rate = 5%
The value of the house after 3 years
⇒ 4640000 × 95/100 × 95/100 × 95/100 = x
⇒ x = Rs. 3978220