Question

The cost of a car purchased 2 years ago, depreciates at the rate of $30\%$ every year. If its present worth is ₹ 415600, find its purchase price.

• A. ₹ 848163
• B. ₹ 848173
• C. ₹493525
• D. ₹496725

Answer 1

The correct option is A

₹ 848163

Here, A= present value = ₹ 415600, t = 2 years, r = $30\%$

Let $P$ = Purchase price

Using $A=P{(1-\frac{r}{100})}^n$
$415600=P{(1-\frac{30}{100})}^{2}415600=P{\left(\frac{70}{100}\right)}^2=P\left(\frac{7\times 7}{10\times 10}\right)=P\left(\frac{49}{100}\right)P=415600\times \frac{100}{49}=₹848163.265=₹848163$