A car was bought at 400.000. the value of the car depreciates at rate of 10 percent per annum. what will be the value of the car at the end of the 6th year

percent-per-annum

#1

a car was bought at 400.000. the value of the car depreciates at rate of 10 percent per annum. what will be the value of the car at the end of the 6th year

Answer:

The value of depreciattion is 10%
So in first year its value will decrease to 360,000(10%is 40,000)
similarly in second year it will decrease to 324000
in third year it will decrease to 291600
in fourth year it will decrease to 262440
in fifth year it will decrease to 236196
the value of the car at the end of 6th year will be 212576.4

We can solve above problem by different method also
Since , every year car’s value decreases by 10 %
that means only 90% value remains

So, after 6th year its value will be
400000*(0.9^{6})=2125756.4