Sum
The value of a motorcycle depreciates at a rate of 15% per year. What will be the value of the motorcycle for 3 year hence, which is now purchased for ₹ 45,000?
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Solution
a = ₹ 45000
Depreciation = 15% for ₹ 45000
= `45000 xx 15/100`
d = ₹ 6750 since it is depreciation
d = – 6750
At the end of 1st year its value = ₹ 45000 – ₹ 6750
= ₹ 38250,
Again depreciation = `38250 xx 15/100` = 5737.50
At the end of 2nd year its value
= ₹ 38250 – ₹ 5737.50 = 32512.50
Again depreciation = `32512.50 xx 15/100` = 4876.88
At the end of the 3rd year its value
= 32512.50 – 4876.88
= 27635.63
∴ The value of the motorcycle at the 3rd year
= ₹ 27636
Concept: Special Series
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