A clock manufacturer decreases the price of a particular model by 6% each year. If the current price of the model is ₹4,500, then what would be the price after 2 years?
₹5,093 (approx)
Here, V = current value = ₹ 4,500, n = 2 years, r = 6%,
Let, V2 = Price after 2 years
Using V=V2(1−r100)n,
4500=V2(1−6100)2 4500=V2(94100)2
V2=4500×(10094)2 V2=₹5,093 (approx)