The value of a car depreciates at the rate of 50 pecent per annum. If its present value is Rs. 75000, then what was the value of the car 3 years ago?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Rs. 600000.
After 1 year its value would= ( 0.5x ),
After 2 years its value would = ( 0.5 × 0.5x = 0.25x )
After 3 years its value would = ( 0.5 × 0.25x = 0.125x ).
⇒ 0.125x = 75,000
⇒ x = 75,000 / 0.125 = 600,000
The value of the car 3 years ago was Rs. 600,000.