English

The Value of a Car Depreciated by 10% in the First 2 Years and by 8% in the Third Year. Express the Total Depreciation of the Car as a Single per Cent During the Three Years.

Advertisements
Advertisements

Question

The value of a car depreciated by 10% in the first 2 years and by 8% in the third year. Express the total depreciation of the car as a single per cent during the three years.

Sum
Advertisements

Solution

Let value of car be Rs x. 

`"V"_0` =Rs x ; n = 3 ; r = 10%  for first 2 years and 8% for 3rd year .

`therefore "V"_"t" = "V"_0 xx (1 - "r"/100)^"n"`

`=> "V"_"t" = "Rs"  "x"  xx (1 - 10/100)^2 (1 - 8/100)`

`=> "V"_"t" = "Rs"  "x"  xx 9/10 xx 9/10 xx 23/25`

`=> "V"_"t" = "Rs"  "x"  xx 1863/2500`

`=> "V"_"t" = "Rs"  0.7452  "x"`

Depreciation in the value of car

= Rs (x - 0.7452 x) = Rs 0.2548 x  

Percentage change in depreciation 

`= (0.2548  "x")/"x" xx 100`

= 25.48 %

Percentage change = 25.48 % 

shaalaa.com
Concept of Compound Interest - Use of Compound Interest in Computing Amount Over a Period of 2 Or 3-years
  Is there an error in this question or solution?

RELATED QUESTIONS

In what period of time will Rs. 12,000 yield Rs. 3972 as compound interest at 10% per annum, if compounded on a yearly basis?


Calculate the amount and the compound interest for the following:

Rs.13,500 at 10°10 p.a. in 2 years


Calculate the amount and the compound interest for the following:

Rs. 76, 000 at 10 °/o p.a. in `2 1/2` years


The value of a refrigerator depreciates by 8% of its value at the beginning of the year. Find the original value of the refrigerator if it depreciated by Rs 2,392 in the second year.


The value of a machine, purchased two years ago, depreciates at the annual rate of 10%. If its present value is Rs.97,200, find:

  1.   Its value after 2 years.
  2.   Its value when it was purchased.

Rohit borrows Rs. 86,000 from Arun for two years at 5% per annum simple interest. He immediately lends out this money to Akshay at 5% compound interest compounded annually for the same period. Calculate Rohit's profit in the transaction at the end of two years.


The simple interest on a certain sum of money for 3 years at 5% per annum is Rs.1,200. Find the amount and the compound interest due on this sum of money at the same rate and after 2 years. Interest is reckoned annually.


Calculate the amount and compound interest on Rs 20000 for 3 years at 10% per annum, interest being payable annually.


How much will Rs 14000 amounts to 2 years at compound interest, if the rates for the successive years be 5% and 8% respectively?


The value of a mobile depreciated by 5% per year during the first two years and 10% per year during the third year. Express the total depreciation of the value of the mobile in percent during the three years.


Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×