The cost of a bike, purchased 2 years ago, depreciates at the rate of 20% every year. If its present worth is ₹35600, find its purchase price.
Let the present value of the car be V which is ₹35600.
Time, n=2 years, and rate of depreciation, r=20% per annum.
Let the purchase price be V0
Using depreciation formula, V=V0(1−r100)n