Question

The value of a car depricates by 20% every year .If after 2yrs the price of the car is 208000Rs find the original price.


I want the complete solution

Answer 1

Let the original price of the car be Rs x
Depreciation, R= 20% pa
Time period, n = 2 years
Value of car after depreciation, A = Rs 2,08,000
Recall the formula, A = P[1 – (r/100)]ⁿ
208000 = x[1 – (20/100)]²
= x[80/100]²
= x[16/25]
Therefore, x = (208000) × (25/16) = 325000
Hence original price of the car is Rs 3,25,000.