Question

The price of scooter depreciates at the rate of 20% in the first year ,15% in the second year and 10% afterwards,what will be the value of scooter now costing RS 25000 after 3 years?

Answer 1

After applying the yearly depreciation rates (20% for the first year, 15% for the second year, and 10% for the third year) to the initial value of Rs 25,000, the value of the scooter after three years is Rs 15,300.

Step-by-step explanation:

To calculate the value of the scooter after three years considering the given rates of depreciation, we need to apply the percentage decrease sequentially for each year.

Calculating Depreciation:

1. After the first year, the scooter's value will depreciate by 20%. So, the value after the first year is: Original Value × (1 - Depreciation Rate) = Rs 25,000 × (1 - 0.20) = Rs 20,000.
2. After the second year, the value depreciates by 15%. The new value is: First Year Value × (1 - Depreciation Rate) = Rs 20,000 × (1 - 0.15) = Rs 17,000.
3. After the third year, the value depreciates by 10%. The final value after the third year is: Second Year Value × (1 - Depreciation Rate) = Rs 17,000 × (1 - 0.10) = Rs 15,300.

Therefore, after three years, the value of the scooter initially costing Rs 25,000 would be Rs 15,300.