Question

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

• A. ₹ 34820
• B. ₹ 38640
• C. ₹ 31830
• D. ₹ 33650

Answer 1

The correct option is B

₹ 38640

Let $P$ be the value of the scooter after $n$ years and let $P_0$ be its purchase price.

$P=P_0{(1-\frac{r}{100})}^n$

$P=42000[1-\frac{8}{100}]$

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