Question : The price of motorcycles depreciates every year by 10%. If the value of the motorcycle after 3 years will be Rs. 36,450, what is the present value (in Rs.) of the motorcycle?
Option 1: 45,000
Option 2: 50,000
Option 3: 48,000
Option 4: 51,000
Correct Answer: 50,000
Solution :
Let the present value of a motorcycle be $x$.
Value after $n$ years $= x × (1–\frac{\text{R}}{100})^n$
Where $x$ is the present value, $\text{R}$ is the rate of interest and $n$ is the time.
Value after 3 years $= x × (1-\frac{\text{R}}{100})^3$
So, $36450 = x × (1-\frac{10}{100})^3$
⇒ $36450 = x × (\frac{9}{10})^3$
⇒ $x = 36450\times \frac{10\times 10 \times 10}{9 \times 9 \times 9}$
$\therefore x=50000$
So, the present value = Rs. 50,000
Hence, the correct answer is 50,000.
Related Questions
Know More about
Staff Selection Commission Sub Inspector ...
Application | Eligibility | Selection Process | Result | Cutoff | Admit Card | Preparation Tips
Get Updates Brochure
Your Staff Selection Commission Sub Inspector Exam brochure has been successfully mailed to your registered email id “”.
