Q. 28

# 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?

Present value of scooter, P = Rs.56000

Time, n = 3 years

Rate of depreciates, R = 10% per annum

Now,

Amount (A) = P (1 + R/100)n [Where, A = Amount with compound interest

P = Present value

R = Annual interest rate

n = Time in years]

Value = P (1 - R/100)n [ Rate decreases]

= 56000 (1 - 10/100)3

= 56000 (1 - 1/10)3

= 56000 (9/10)3

= 56000 × 729/1000

= 56 × 729

= 40824

Value of scooter after 3 years will be Rs.40824.

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