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Question
Three years ago a friend offered me a used typewriter for Rs. 1,024. A year later he offered me the same for Rs. 640 and last year he wanted Rs. 400 and now he is willing to sell it to me for Rs. 250. But I have decided to buy it when he reduces the price next time. If he is constantly reducing its price, at what price will he offer the typewriter to me next?
Three years ago a friend offered me a used typewriter for Rs. 1,024. A year later he offered me the same for Rs. 640 and last year he wanted Rs. 400 and now he is willing to sell it to me for Rs. 250. But I have decided to buy it when he reduces the price next time. If he is constantly reducing its price, at what price will he offer the typewriter to me next?
a. Rs. 150.45
b. Rs. 156.25
c. Rs. 211.25
d. Rs. 206.75 e. Rs. 202.25
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Answer
Hi Vishal,
The principle of depreciation is used here
Amount of after every depreciation = $$(1-\frac{x}{100})$$*A (Where A is the original amount)
Here the depreciation factor = $$(1-\frac{x}{100})$$ = 1024/640 = 640/40 = 400/250= 1.6
Therefore, the next price of the typewriter = 250/1.6 = 156.25
Hope this helps
Thanks
