Question 30
The value of a second-hand car is depreciating at the rate of 12% per annum. What will be its value (in ₹) after two years if its current value is ₹2,96,875?
Solution
If the value of car depreciates by 12% every year, it's value after N years will be: $$P\times\ \left(1-d\%\right)^N$$.
So, the value of car after 2years = $$296875\times\ 0.88^2\ =\ 229900$$.
