What will be The Value of The Car After Five Years?

The value of a car is Rs. 1,00,000 and it depreciates @ 10% per annum. What will be the value of the car after five years?

  1. Rs. 55,400
  2. Rs. 50,000
  3. Rs. 60,000
  4. Rs. 59, 049
Anurag Mishra Professor Asked on 6th September 2015 in Maths.
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1 Answer(s)

Answer: (4) Rs. 59, 049

Explanation:-
Given-
Principal = Rs. 1, 00,000,  Rate = 10% and Time = 5 years.

Formula-
Amount = Principal (1 – Rate/100)time

Then, Amount = 1, 00, 000 (1 – 10/100)5
= 1, 00, 000 (9/10)5
= 1, 00, 000 x 9 x 9 x 9 x 9 x 9/10 x 10 x 10 x 10 x 10
= 9 x 9 x 9 x 9 x 9
= Rs. 59, 049

Then, the value of car after five years will be Rs. 59, 049.

Hence, the answer is (4) Rs. 59, 049.

Anurag Mishra Professor Answered on 9th September 2015.
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