Question

Students purchased a pen for Rs100 . At the end of 8 years it was valued at Rs20 . Assuming the yearly depreciation, a constant amount finds the annual depreciation .
A. 8
B. 9
C. 10
D. 11

Answer 1

Hint: We have to proceed with the given question by first finding the total depreciated value of the pen in 8 years. After that we need to divide this quantity by 8 years to find the annual depreciation of the value of the pen .

Complete step-by-step answer:

Cost price – Rs 100
Price after 8 years – Rs 20
Total depreciation in 8 years = 100 – 20 = Rs 80
Thus the annual depreciation is = $\dfrac{{{\text{total depreciation}}}}{{{\text{time period}}}} = \dfrac{{80}}{8} = Rs10/year$

Note: It is important to note that the annual depreciation in the value is the price of a pen which decreases in an year . As the price is decreasing every year the student suffered a loss of Rs80 in 8 years . Remember that in this question the price is decreasing at a constant otherwise if the price decreased at a certain rate then the procedure for solving this question would be different .