Question

A scooter is bought for Rs 32000. Its value depreciates at 10% per annum. What will be its value after 2 years?

Answer 1

$$\begin{gathered} \mathrm{Let}\mathrm{the}\mathrm{principal}\mathrm{amount}\mathrm{be}P=\mathrm{Rs}32000. \\ \mathrm{Rate}\mathrm{of}\mathrm{interest}\left(R\right)=10\% \\ \mathrm{Time}\left(n\right)=2\mathrm{years} \\ \mathrm{Now},\mathrm{A}=\mathrm{Rs}.\mathrm{P}\times {\left(1-\frac{\mathrm{R}}{100}\right)}^{\mathrm{n}} \\ =\mathrm{Rs}.32000\times {\left(1-\frac{10}{100}\right)}^2 \\ =\mathrm{Rs}.32000\times {\left(\frac{90}{100}\right)}^2 \\ =\mathrm{Rs}.32000\times \left(\frac{9}{10}\right)\times \left(\frac{9}{10}\right) \\ =\mathrm{Rs}.\left(320\times 9\times 9\right) \\ =\mathrm{Rs}.25920 \\ \therefore \mathrm{The}\mathrm{value}\mathrm{of}\mathrm{the}\mathrm{scooter}\mathrm{after}2\mathrm{years}\mathrm{is}\mathrm{Rs}25920. \end{gathered}$$