Ratan bought a car worth rs.3,50,000 four years ago.If the value of the car depreciates over time at a fixed rate of 10% per annum,then what will be the present worth of car?
a,2,29,635
b,2,50,000
c,2,30,000
d,2,55,150

• ans A,......
  Explanation
  350000-------10% depreciate---315000
  315000--------10% depreciate 283500
  283500---------10% depreciate---255150
  255150--------10% depreciate------229635
  
• 9 years agoHelpfull: Yes(14) No(0)
• P(1-R/100)^n
  P=350000, R=10, n=4
  
  350000*(1-10/100)^4
  229635
• 10 years agoHelpfull: Yes(8) No(0)
• 350000*0.9*0.9*0.9*0.9=229635
• 9 years agoHelpfull: Yes(4) No(0)
• a 229635
  p(1-r/100)^n
• 9 years agoHelpfull: Yes(2) No(0)
• 350000*{(90/100)^4} = 229635
• 10 years agoHelpfull: Yes(0) No(0)
• 1st year - 0.9 * 350000
  2nd year - 0.9 * 35000
  similarly after 4 years - 0.9^4 * 350000 = 229635
• 9 years agoHelpfull: Yes(0) No(0)
• Ans is a 229635
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• d
  10% depreciation meansd it reduces by10% every year
  so totally for 4 years it becomes 255150
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• present worth of the car will be 350000/(1+10/100)^4
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• (90/100)*(90/100)*(90/100)*(90/100)*350000= 229635.
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• (350000*9*9*9*9)/10*10*10*10= present value
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