Question

If a two wheeler is purchased at ₹ 56250 and its value depreciates at the rate of 12% per annum, then its value after two years is

• A. ₹ 43,580
• B. ₹ 43,620
• C. ₹ 43,480
• D. ₹ 43,560

Answer 1

The correct option is D

₹ 43,560

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

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

$P=56250\times [1-\frac{12}{100}{]}^2$ (here n = 2)

$⟹$ P = ₹ 43,560
The value of the two wheeler after two years will be ₹ 43,560