The valuation of a house depreciates at the rate of 10% in a year, compared to its value at the beginning of that year. If the current value of the house is ₹40,00,000, then what will be the value of house after three years?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹29,16,000.
The current value of the house = ₹40,00,000
Depreciate rate r = 10%
New value = Initial value × (1 - r/100)3
So, the rate of the house after 3 year = 40,00,000 × (1 - 10/100)3
= 40,00,000 × 729/1000
= ₹29,16,000