Question

Ravi bought a bicycle at ₹15000 and its value depreciates at the rate of 15% per annum. Find its value after two years.

• A. ₹ 10783.5
• B. ₹ 10873.25
• C. ₹ 10837.5
• D. ₹ 10738.75

Answer 1

The correct option is C ₹ 10837.5

Given,
Principal (P) = ₹15000
Rate (R) = 15%

Now by using the formula for depreciating value, we can write

$A=P\times [1-\frac{R}{100}{]}^n$
$A=15000\times [1-\frac{15}{100}{]}^2$
$A=₹10837.5$

The value of bicycle after two years will be ₹10837.5.