Question

The value of a property decrease every year at the rate of $5\%$. If its present value $Rs.4,11,540$, what was its value three years ago.

Answer 1

A] present value = Rs 411540

rate of depreciation = 5% p.a

t = 3 years

value 3 yrs ago$=p(1-\frac{R}{100}{)}^n$

$\Rightarrow 411540=p(1-\frac{5}{100}{)}^3$

$\Rightarrow 411540=p(\frac{95}{100}{)}^3$

$\Rightarrow 411540=p(\frac{19}{20}{)}^3$

$\Rightarrow 411540=p(\frac{6859}{8000}{)}^3$

$\Rightarrow \frac{411540\times 80000}{6859}=Rs480000$