Ms. Cherian purchased a boat for Rs 16000.

Question:

Ms. Cherian purchased a boat for Rs 16000. If the total cost of the boat is depreciating at the rate of 5% per annum, calculate its value after 2 years.

Solution:

Value of the boat after two years $=\mathrm{P}\left(1-\frac{\mathrm{R}}{100}\right)^{\mathrm{n}}$

$\Rightarrow 16,000\left(1-\frac{5}{100}\right)^{2}$

$=16,000(0.95)^{2}$

$=14,440$

Thus, the value of the boat after two years will be Rs 14,440 .

Leave a comment

Close

Click here to get exam-ready with eSaral

For making your preparation journey smoother of JEE, NEET and Class 8 to 10, grab our app now.

Download Now