Question

The value of a car depreciates by $15\%$ each year. At the end of $2014$ the value of the car was Rs. $125000$. Find out the value of car at the end of $2011$.

Answer 1

Given, $P=125000,r=15\%,n=3$ years

We know $A=P\left[{(1-\frac{r}{100})}^n\right]$

$\Rightarrow A=125000\left[{(1-\frac{15}{100})}^3\right]$

$\Rightarrow A=$ Rs. $76765.62$

Thus, the value of car at the end of $2011$ is Rs. $76765.62$.