The value of a washing machine depreciated from ₹40,960 to ₹21,970 in 3 years. Find the yearly rate of depreciation.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 18.75%.
The value of a washing machine depreciated from ₹40,960 to ₹21,970 in 3 years
⇒ 40960 : 21970
⇒ 4096 : 2197
Now, the period is 3 years then, we will take the cube root
⇒ ∛4096 : ∛2197
⇒ 16 : 13
Thus, its value decreased from 16 to 13
Percentage = 3/16 × 100 = 18.75%