Question

The cost of a car depreciates at the rate of $20\%$ every year. If its present worth is ₹315600, find the purchase value of the car, if it was purchased two years back.

• A. ₹4,93,125
• B. ₹2,01,984
• C. ₹4,10884
• D. ₹2,22,884

Answer 1

The correct option is A

₹4,93,125

Given:
A = ₹3,15,600,
r = 20 % ,
n = 2 years.

Let P be the value of the car two years ago.

$A=P(1-\frac{20}{100}{)}^2$
$315600=P(1-\frac{1}{5}{)}^2$
$315600=P\left(\frac{4\times 4}{5\times 5}\right)$

$P=\frac{315600\times 5\times 5}{4\times 4}$

$P=₹4,93,125$

$\therefore \text{Purchase value of the car}=₹4,93,125$