A car was bought in $2013$ for Rs. $30, 00, 000$ . If the value of the car depreciates by $5 %$ each year, then find its worth in the year $2016$ .

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Solution

Rate of depreciation $= 5 %$ .

Initial price $= R s .30, 00, 000$

After $n$ years, price after depreciation $= A {(1 - \frac{r}{100})}^{n}$ { $A$ is the amount of Car in $2013$ }

After $3$ years in 2016, the final price will be $= R s .30, 00, 000 {(1 - \frac{5}{100})}^{3} = R s .25, 72, 125$

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A car was bought in 2013 for Rs. 30,00,000. If the value of the car depreciates by 5% each year, then find its worth in the year 2016.

Rate of depreciation=5%.Initial price =Rs.30,00,000After n years, price after depreciation =A(1−r100)n {A is the amount of Car in 2013}After 3 years in 2016, the final price will be =Rs.30,00,000(1−5100)3=Rs.25,72,125

A car was bought in $2013$ for Rs. $30, 00, 000$ . If the value of the car depreciates by $5 %$ each year, then find its worth in the year $2016$ .

Rate of depreciation $= 5 %$ .

Initial price $= R s .30, 00, 000$

After $n$ years, price after depreciation $= A {(1 - \frac{r}{100})}^{n}$ { $A$ is the amount of Car in $2013$ }

After $3$ years in 2016, the final price will be $= R s .30, 00, 000 {(1 - \frac{5}{100})}^{3} = R s .25, 72, 125$