Question

the price of a scooter depreciates by 2% of its value at the beginning of each year, find the sale value of the scooter after 3 years, if its present sale value is rs 12000

Answer 1

$$\begin{gathered} \mathrm{Initial}\mathrm{value}\mathrm{of}\mathrm{the}\mathrm{scooter},\mathrm{P}=\mathrm{Rs}12000 \\ \mathrm{Rate}\mathrm{of}\mathrm{depriciation},\mathrm{R}=2\%\mathrm{p}.\mathrm{a} \\ \mathrm{Time},\mathrm{n}=3\mathrm{yrs} \\ \mathrm{Value}\mathrm{of}\mathrm{scooter}\mathrm{after}3\mathrm{yrs}=\mathrm{P}{\left[1-\frac{\mathrm{R}}{100}\right]}^{\mathrm{n}}= \\ 12000{\left[1-\frac{2}{100}\right]}^3 \\ =12000\times \frac{49}{50}\times \frac{49}{50}\times \frac{49}{50} \\ =\mathrm{Rs}941.192 \end{gathered}$$