A car is purchased for Rs. 80,000. Depreciation is calculated at 5% pe

Question

A car is purchased for Rs. 80,000. Depreciation is calculated at 5% per annum for the first 3 years and 10% per annum for the next 3 years. Find the money value of the car after a period of 6 years.

22 Feb 2023

Answer :

Word Count : 465

The depreciation rate for the first 3 years is 5% per annum, so the value of the car after the first year will be:

Value after 1st year = 80,000 - (5% of 80,000) = 80,000 - 4,000 = Rs. 76,000

Similarly, the value of the car after the second year will be:

Value after 2nd year = 76,000 - (5% of 76,000) = 76,000 - 3,800 = Rs. 72,200

And after the third year, the value of the car will be:

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