Compound Interest Practice Test 5

Question : 5 of 40

Marks: +1, -0

At what price was the car purchased for 2 years ago if its present value is Rs 2.5 lakh and its value depreciates by 25% p.a. compounded annually?

Solution:

2,50,000 =P(1-25/100)^2

2,50,000=P(75/100)^2

P=4,44,445

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