Question

A scooter was bought at ₹ 42000. If the value of the scooter depreciates at the rate of 8% per annum. Its value after one year will be .

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

Answer 1

The correct option is D ₹ 38640

Using the formula for depreciating value:

$A=P\times [1-\frac{R}{100}]$
$A=42000\times [1-\frac{8}{100}]$
$A=42000\times [1-\frac{2}{25}]$
$A=42000\times \left[\frac{23}{25}\right]$

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