The price of a car is Rs.2,50,000. In the first year, its value depreciates by 10%, and in the second year, it depreciates by 15%. What will be the value of the car after 2 years?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Rs.1,91,250
Given that
The price of a car is Rs.2,50,000.
The first year depreciation = 10%
The second year depreciation = 15%
The depreciation of the car after 2 years
= 250000 × (10/100) × (15/100)
= 250000 × (1/10) × (3/20)
= 1250 × 3 = 3750 Rs
The value of the car after 2 years will be
= 250000 - 3750 = 191250 Rs