Question

The cost price of a car is $Rs.4,00,000$. If its price decreases by $10\%$ every year, then when will be the cost of car after $3$ years?

• A. $Rs.3,00,000$
• B. $Rs.2,91,700$
• C. $Rs.2,91,600$
• D. $Rs.2,50,000$

Answer 1

The correct option is C $Rs.2,91,600$

Cost price of car $\left(P\right)=Rs.4,00,000$

Rate of depreciation $\left(R\right)=10\%$

Time $\left(T\right)=3\text{years}$

So, Cost of car after $3\text{years}=P(1-\frac{R}{100}{)}^T$

$=4,00,000(1-\frac{10}{100}{)}^3$

$=4,00,000(1-0.1{)}^3$

$=4,00,000(0.9{)}^3$

$=4,00,000\times 0.729$

$=Rs.2,91,600$

So, $\text{C}$ is the correct option.