**Question:**

A scooter is bought at Rs 56000. Its value depreciates at the rate of 10% per annum. What will be its value after 3 years?

**Solution:**

Initial value of the scooter, $P=$ Rs 56000

Rate of depreciation, $R=10 \%$

Time, $n=3$ years

Then the value of the scooter after three years is given by

Value $=P \times\left(1-\frac{R}{100}\right)^{n}$

$=$ Rs. $56000 \times\left(1-\frac{10}{100}\right)^{3}$

$=$ Rs. $56000 \times\left(\frac{100-10}{100}\right)^{3}$

$=$ Rs. $56000 \times\left(\frac{90}{100}\right)^{3}$

$=$ Rs. $56000 \times\left(\frac{9}{10}\right)^{3}$

$=$ Rs. $56000 \times\left(\frac{9}{10}\right) \times\left(\frac{9}{10}\right) \times\left(\frac{9}{10}\right)$

$=$ Rs. $(56 \times 9 \times 9 \times 9)$

$=$ Rs. 4082

Therefore, the value of the scooter after three years will be Rs. $40824 .$