Question

The price of a scooter is R.s.55000. it depreciates at the rate of 10% in the first year, 15% in the second year and 20% in the third year. What will the value of the scooter
Be after 3 years?

Answer 1

Hint: To solve this question we have to just follow the steps given in the question . Just calculate the price after the first year and then similarly the second and third year and there is a simple calculation of percentage.

Complete step-by-step answer:
We have
Price of Scooter = Rs.55000
As given in question after first year its price depreciates by 10%
So price after one year will be = 55000 - 10% of 55000
$
  55000 - \left( {\dfrac{{10}}{{100}} \times 55000} \right) \\
   = 55000 - 5500 \\
   = Rs.49500 \\
 $
Now as given in question price drop in second year is 15%
After two year its price will be = 49500 – 15% of 49500
$
  49500 - \left( {\dfrac{{15}}{{100}} \times 49500} \right) \\
   = 49500 - 7425 \\
   = Rs.42075 \\
 $
Now as given in question price drop in third year is 20%
After three years its price will be
42075 – 20% of 42075
$
   = 42075 - \left( {\dfrac{{20}}{{100}} \times 42075} \right) \\
   = Rs.33660 \\
$

Note: -Whenever we get this type of question the key concept of solving is we have to follow procedure to find the price as given in question. We have to just care about the second and third year that we have to take percentage at the current price, not the original price.