Question
A car’s value depreciates by 10% in the first year and
20% in the second year. If its value after 2 years is Rs. 28,800, find the original value of the car.Solution
ATQ,
Net percentage change = –10% –20% + {[(–10%) × (–20%)]/100}%= –30% + 2% = –28%
Let present value be Rs. ‘x’
Then, 72% of x = 28800
Or, 0.72 × x = 28800
Or, x = 28800 / 0.72 = 40000
So, the present value of the car = Rs. 40,000
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