Question

A car which costs $\text{Rs.}3,50,000$ depreciates by $10$% every year. What will be the worth of the car after three years?

• A. $\text{Rs.}2,55,150$
• B. $\text{Rs.}1,65,150$
• C. $\text{Rs.}2,25,350$
• D. $\text{Rs.}1,55,350$

Answer 1

The correct option is A $\text{Rs.}2,55,150$

Given:

Principal, $P=Rs.350000$

Rate, $R=10\%$

Time, $T=3$ years

The worth of car after $3$ years will be,

$\begin{array}{cc}350000{\left(1-\frac{10}{100}\right)}^3& =350000\times \frac{9}{10}\times \frac{9}{10}\times \frac{9}{10}\\ & =\text{Rs.}2,55,150\end{array}$

So, the price of the car after $3$ years will be equal to $\text{Rs.}2,55,150.$