Compound Interest Practice Test 3

Question : 22 of 40

Marks: +1, -0

The value of a vehicle depreciates every yearby 5%. If the present value of the vehicle is Rs 50,000, then its value after two years (in rupees) is:

Solution:

P = Rs 50, 000 R = 5% decreased T = 2 years

A=P(1+R/100)^T

=50,000×95/10×95/10

= Rs 45,125

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