Question

An emergency lamp costs Rs. 1100. Every year, its value depreciates by 10%. What is its value at the end of 3 years?

• A. Rs.908.90
• B. Rs. 809.10
• C. Rs. 801.90
• D. Rs. 980.90

Answer 1

The correct option is C Rs. 801.90

Cost of Lamp = Rs 1100
Depreciation rate = 10 %
Now after 3 years, let the cost be C
then, $C=1100(1-\frac{R}{100}{)}^T$
$C=1100(1-\frac{10}{100}{)}^3$
$C=801.9$ Rs