Question

The value of a car depreciates $20$% every year. If after two years, the price of a car is INR $420000,$ find the original price of the car?

• A. $656200$
• B. $656250$
• C. $655250$
• D. $650250$

Answer 1

The correct option is B $656250$

Price After two year $=4,20,000$

let price after one year $=x$

$\frac{x-420,000}{x}\times 100=20$

$x=\frac{5}{4}\times 420,000$

$x=525,000$

let price (original ) $=y$

$\frac{y-525,000}{y}\times 100=20$

$y=\frac{5}{4}\times 525,000$

$y=656,250$