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Question : A two-wheeler depreciates by 20% of its value every year. If the present value of the same is Rs. 90,000, its depreciated value would be Rs. 36,864 after:

Option 1: 6 years

Option 2: 5 years

Option 3: 4 years

Option 4: 3 years


Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: 4 years


Solution : Let the required year be n.
The required equation is:-
90000 × $(\frac{80}{100})$n = 36864
⇒ 90000 × (0.8)n = 36864
⇒ (0.8)n =$\frac{36864}{90000}$
⇒ (0.8)n = 0.4096
⇒ (0.8)n = (0.8)4
⇒ n = 4
So, the depreciated value would be Rs. 36,864 after 4 years.
Hence, the correct answer is 4 years.

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