Question

A Maruti car costing $Rs.2,50,000$ dropped $23\%$ in value of the first year. How much was if worth at the end of the year?

Answer 1

Step 1: Finding the drop in price, equivalent to $23\%$.

Cost of Maruti $=Rs.2,50,000$

Reduction in the price $=23\%$of the original rate.

Therefore, the price reduced is,

$$\begin{gathered} \Rightarrow 23\%of2,50,000 \\ \Rightarrow \frac{23}{100}\times 250000=\frac{23\times 2500\cancel{00}}{1\cancel{00}}=57500 \end{gathered}$$

Thus, the cost of Maruti is dropped by $Rs.57,500$.

Step 2: Finding the cost of Maruti at the end of the year after price drop.

$\Rightarrow$Original cost $-$Drop-in cost

$\Rightarrow Rs.2,50,000-Rs.57,500=Rs.1,92,500$

Hence, the value of the car at the end of the year will be $Rs.1,92,500$