Question 7

The value of a car depreciates at the rate of 15% per annum. If its present value is Rs 433500, then what was the value (in Rs) of the car 2 years ago?

Solution

Let value of car 2 years ago = Rs. $$x$$

Rate of depreciation = 15%

=> Current value of car = $$x\times(1-\frac{15}{100})\times(1-\frac{15}{100})=433500$$

=> $$x=433500\times\frac{100}{85}\times\frac{100}{85}$$

=> $$x=60\times10000=600000$$

$$\therefore$$ The value (in Rs) of the car 2 years ago = Rs. 6,00,000

=> Ans - (D)

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