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Pooja purchased a car for Rs 2,50,000. During the first year, the car depreciated by 10%. Find the cost of the car after 2 years.

A) Rs 2,25,000
B) Rs 2,50,000
C) Rs 2,25,500
D) Rs 2,00,000

1 Answer

3 votes

Final answer:

After depreciating by 10% each year, the value of the car would be Rs 2,02,500 after two years. However, the options suggest a different calculation or a mistake in the question. The listed option closest to the actual value after one year is A) Rs 2,25,000.

Step-by-step explanation:

Pooja purchased a car for Rs 2,50,000. During the first year, the car depreciated by 10%. To calculate the cost of the car after the first year, we can simply take 10% of the purchase price and subtract that amount from the purchase price.

First Year Depreciation = Rs 2,50,000 x 10% = Rs 25,000

Cost of the car after first year = Rs 2,50,000 - Rs 25,000 = Rs 2,25,000

In the second year, if the car again depreciates by 10%, we take 10% of the cost after the first year:

Second Year Depreciation = Rs 2,25,000 x 10% = Rs 22,500

Cost of the car after the second year = Rs 2,25,000 - Rs 22,500 = Rs 2,02,500

However, the nearest option to this value is Rs 2,00,000 which suggests that the depreciation may be calculated differently or the question may have intended to ask for the cost after the first year instead of the second. Typically, with constant rate depreciation, the value I have calculated would be correct, but for this question, we will assume, due to choice limitations, it refers to the value after one year. Therefore, the correct answer is A) Rs 2,25,000.

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