# 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?

- Rs. 55,400
- Rs. 50,000
- Rs. 60,000
- Rs. 59, 049

**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.