Ms. Cherian purchased a boat for Rs 16000. If the total cost of the boat is depreciating at the rate of 5% per annum, calculate its value after 2 years.

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Solution

$Value of the boat after two years = P {(1 - \frac{R}{100})}^{n} \Rightarrow 16, 000 {(1 - \frac{5}{100})}^{2} = 16, 000 {(0.95)}^{2} = 14, 440 Thus, the value of the boat after two years will be Rs 14, 440 .$

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Ms. Cherian purchased a boat for Rs 16000. If the total cost of the boat is depreciating at the rate of 5% per annum, calculate its value after 2 years.

Value of the boat after two years=P1-R100n⇒16,0001-51002=16,0000.952=14,440Thus, the value of the boat after two years will be Rs 14,440.

$Value of the boat after two years = P {(1 - \frac{R}{100})}^{n} \Rightarrow 16, 000 {(1 - \frac{5}{100})}^{2} = 16, 000 {(0.95)}^{2} = 14, 440 Thus, the value of the boat after two years will be Rs 14, 440 .$