Question
The cost of a bike, purchased 2 years ago, depreciates at the rate of 20% every year. If its present worth is ₹ 35600, find its purchase price.
Answer: Option A
:
A
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A
Let the present value of the car be V which is ₹ 35600,
Time, n=2 years, and rate of interest, r=20%
Let the purchase price be V0
Using, V=V0(1−r100)n
⇒35600=V0(1−20100)2⇒35600=V0(80100)2=V0(1625)⇒V0=35600×2516=₹ 55625
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