Question

Amar buys a car for ₹5,00,000. The car's value decreases by 10 % after every year's use. What will be the value of car after 2 years?

• A. $₹4,00,500$
• B. $₹4,00,000$
• C. $₹4,05,000$
• D. $₹4,50,000$

Answer 1

The correct option is C $₹4,05,000$

After one year, value decreases by 10 % of 5,00,000.
$\frac{10}{100}\times 5,00,000=50,000$

So, after a year it decreases by ₹50,000. New price after 1 year is 5,00,000 - 50,000 = ₹4,50,000.

2nd year, it decreases again by 10% on current value which is 4,50,000.

So, $\frac{10}{100}\times 4,50,000=₹45,000$

New price after 2 years becomes 4,50,000 - 45,000 = ₹4,05,000.