Question

A refrigerator was purchased one year ago for rs 20000. its value depreciates at the rate of 15% per annum. Find its present value and its value after one year

• A. 17,000; 14,550
• B. 16,000; 14,500
• C. 17,000; 14,450
• D. none of these

Answer 1

The correct option is C 17,000; 14,450

Cost price of Refrigerator $20,000$

Rate of decrease is $15\%$

Decreased amount is $\frac{15}{100}\times 20,000=3,000$

So the present price is $20,000-3,000=17,000$

Decrease amount a year after is $\frac{15}{100}\times 17,000=2550$

So the price is $17,000-2,550=14,450Rs.$