Compound Interest Practice Test 1

Question : 20 of 40

Marks: +1, -0

Find the value of a building 3 years after construction if its value depreciates at 5% and 8% for the first two years but appreciated by 25% p.a. in the third year. The present value of the building is Rs 6 crore.

Rs 6,55,50,000
Rs 6,32,54,000
Rs 5,59,55,000
Rs 5,99,00,000
None of these

Validate

Solution:

Value after 3 years

=6,00,00,000(1-5/100)

(1-8/100)(1+25/100)

= 60 × 95 × 92 × 125 = 65,550,000

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