Question

The cost of a car purchased 2 years ago, depreciates at the rate of $20\%$ every year. If its present worth is Rs.315600, find its value after 4 years of purchase.

• A. Rs.201894
• B. Rs.201884
• C. Rs.210884
• D. Rs.222884

Answer 1

The correct option is B

Rs.201884

$V_0$ [Present value] = $Rs.315600$, V = value after 2 years, t = 2 years (because the car was purchased 2 years ago), n = $2$, r = $20\%$

$Using,V=V_0{(1-\frac{r}{100})}^{n}V=315600{(1-\frac{20}{100})}^2=315600{\left(\frac{80}{100}\right)}^2=Rs.201984$