AFCAT Model Paper 1

Given:
The rate at which the value decreases = 15%
Present value = 28.9 lacks
Formula used:
Present value = Purchased value ×[

(100–x)

100

]t
Calculation:
Let purchased value of car = x rupees
Present value = Purchased value ×[

(100–x)

100

]t
⇒ 28.9=x[

(100–15)

100

]2
⇒ 28.9=x(

85

100

)2
⇒ 28.9=x(

17

20

)2
⇒ 28.9=(

289

400

)x
∴ The value of purchased car (x) was 40 lakh.