Question

If the present value of a smartphone is ₹25000 and its value falls at a rate of 3% per year.What will be its value after 3 years ?

• A. Rs 22,816.33
• B. Rs 22,916.33
• C. Rs 22,822.33
• D. Rs 22,824.3

Answer 1

The correct option is A Rs 22,816.33

Given
P= 25000 r = -3% per year ( since the value is decreasing)
T(n)= 3 years
A = Value after 3 years

$=P(1+\frac{r}{100}{)}^n$

$=25,000(1+\frac{-3}{100}{)}^3$

$=25,000(\frac{97}{100}{)}^3$

$=25,000\times \frac{97}{100}\times \frac{97}{100}\times \frac{97}{100}$

$=22,816.83$

The value of smartphone after three years = ₹ 22,816.83