Question
The cost of Maruti 800 in the year 1998 was ₹ 2,50,000. After the end of one year and four months, the price underwent depreciation by 10% per annum. Its new price is
Answer: Option B
:
B
Depreciation means a decrease in the value due to use and age of the item.
A=P×[1−r100]n, where A is the amount, P is the principal, r is the rate of interest and n is the time period.
So, priceat the end of one year =2,50,000×[1−10100]1=₹2,25,000
Depreciation for next four months =2,25,000×10×1100×3 = ₹7500
So, the depreciated value afterone year and four months =2,25,000−7,500 = ₹2,17,500
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:
B
Depreciation means a decrease in the value due to use and age of the item.
A=P×[1−r100]n, where A is the amount, P is the principal, r is the rate of interest and n is the time period.
So, priceat the end of one year =2,50,000×[1−10100]1=₹2,25,000
Depreciation for next four months =2,25,000×10×1100×3 = ₹7500
So, the depreciated value afterone year and four months =2,25,000−7,500 = ₹2,17,500
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