Question

Two years ago Nikita purchased a computer for ₹ 50,000.If its value fall by 4% every year, what is the value of computer today?

• A. Rs 46,080
• B. Rs 46,000
• C. Rs 46,900
• D. Rs 47,000

Answer 1

The correct option is A Rs 46,080

Given
P= Cost of computer two years ago= ₹50,000
R= -4% ( Since the value is depreciating)
n(years)= 2
To find,

A = Value of computer today

$=P(1+\frac{r}{100}{)}^n$

$=50,000(1+\frac{-4}{100}{)}^2$

$=50,000(\frac{96}{100}{)}^2$

$=50,000\times \frac{96}{100}\times \frac{96}{100}$

$=46080$

The value of computer today= ₹ 46,080