Finding CI When Rate Compounded Anually or Semi - Anually
The cost of a...
Question
The cost of a refrigerator is ₹9000. Its value depriciates at the rat of 5% every year . find the total depreciation in its value at the end of 2 years
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Solution
Cost of fridge = Rs.9000
depreciation rate = 5% p.a.
Cost of fridge after 1 year = 9000 - 5/100*9000 = Rs. 9000 - Rs. 450
= Rs. 8550
Cost of fridge after 2 years = 8550- 5/100 * 8550 = Rs. 8550- Rs.427.5
= Rs. 8122.5
So after 2 years , cost of fridge = Rs.8122.50
Therefore total depreciation(initial total money -new money (depreciated)) at end of two years is = 9000-8122.50 =rs 877.50