Question 117

The price of motorcycle depreciates every year by 8%. If the value of the motorcycle after 2 years will be Rs 84640, then what is the present value (in Rs) of the motorcycle?

Solution

Given that price of motorcycle depreciates every year by 8% then after 2 years,

92% of 92% of $$x = 84,640$$

$$\frac{92}{100}$$ x $$\frac{92}{100}$$ x $$x = 84,640$$

$$x = 100000$$

Hence, option D is the correct answer.

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