Question

A scooter was bought at ₹42,000.Its value depreciated at the rate of 8% per annum. What is its value after one year?

• A. ₹ 40,640
• B. ₹ 38,640
• C. ₹ 38,600
• D. ₹ 38,000

Answer 1

The correct option is B ₹ 38,640

Here, Value of scooter (P) = ₹42,000
Rate of Depreciation (R)= 8%
Time (n) = 1 years

Value of scooter after depreciation (A)
$A={(1-\frac{R}{100})}^n=42000{(1-\frac{8}{100})}^1=42000{(1-\frac{2}{25})}^1$
$=42000{\left(\frac{23}{25}\right)}^1=42000\times \frac{23}{25}=₹38,640$
Hence, the value of scooter after one year is ₹ 38,640.