Question

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?

Answer 1

a = ₹ 45000
Depreciation = 15% for ₹ 45000

= `45000 xx 15/100`

d = ₹ 6750 since it is depreciation

d = – 6750

At the end of 1^st year its value = ₹ 45000 – ₹ 6750

= ₹ 38250,

Again depreciation = `38250 xx 15/100` = 5737.50

At the end of 2^nd year its value

= ₹ 38250 – ₹ 5737.50 = 32512.50

Again depreciation = `32512.50 xx 15/100` = 4876.88

At the end of the 3^rd year its value

= 32512.50 – 4876.88

= 27635.63

∴ The value of the motorcycle at the 3^rd year

= ₹ 27636