The value of an ornament depreciates every year by 5%. If the present value of the ornament is ₹12,500, what will be its value after 2 years?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. ₹11,281.25 .
Value after 2 years = 12500 × (1 – 0.05)²
= 12500 × (0.95)²
= 12500 × 0.9025
= ₹11281.25