Question

Question 61

The value of a car, bought for Rs 440000 depreciates each year by 10% of its value at the beginning of that year. So, its value becomes Rs 308000 after three years.

Answer 1

False
The value of a car i.e. principal = Rs 440000
Rate of depreciation (R%) = 10% per annum
Time period (T) = 3 yr
The value of the car after depreciation in 3 yr is given by
$A=P{(1-\frac{R}{100})}^r=440000{(1-\frac{10}{100})}^3=440000\times \frac{9}{10}\times \frac{9}{10}\times \frac{9}{10}=440\times 729=Rs.320760$