Question

Madhu bought a house for $Rs1,31,25,000$. If its value depreciates at the rate of $10\%$ per annum, what will be its sale price after three years ?

Answer 1

Principle$=1,31,25,000$.

Rate$=10\%$; $n=3$ years

Amount$=$Principle${[1-\frac{Rate}{100}]}^n$

$=1,31,25,000{[1-\frac{10}{100}]}^3$

$=1,31,25,000\times \frac{90}{100}\times \frac{90}{100}\times \frac{90}{100}$

$=$Rs. $95,68,125$.