Question

A scooter was bought at ₹42000 and its value depreciated at the rate of 8% per annum. Find its value after one year.

• A. ₹38640
• B. ₹38000
• C. ₹48640
• D. ₹48000

Answer 1

The correct option is A

₹38640

Depreciation means reduction of value due to use and age of the item.

Using the formula for depreciating value:

$A=P\times [1-\frac{R}{100}{]}^n$
The value of n is 1
($\because$ we are asked to find the value after one year)
$A=42000\times [1-\frac{8}{100}]$
$A=42000\times [1-\frac{2}{25}]$
$A=42000\times \left[\frac{23}{25}\right]$
A = ₹ 38640

The value of scooter after one year will be ₹ 38640.