Question

A new laptop costs ₹80,000. Laptops depreciate at a high rate because new models with better features are getting announced continuously. The depreciation is as high as 25% every year. What will be the value of this laptop after two years?

• A. ₹40,000
• B. ₹45,000
• C. ₹50,000
• D. ₹55,000

Answer 1

The correct option is B ₹45,000

The cost of the new laptop = ₹80,000
The depreciation rate = 25% per annum
Time period (T) = 2 yrs
Let the cost of laptop after 2 yr = ₹A
$A=P{(1-\frac{R}{100})}^T=80,000{(1-\frac{25}{100})}^2\Rightarrow A=80,000\times \frac{3}{4}\times \frac{3}{4}=80,000\times \frac{9}{16}\therefore A=₹45,000$

Hence, the cost of laptop after 2 yrs is ₹45,000.