The present value of an old car is Rs5,40,000. Its value depreciates at 25% per annum. What was its value (in Rs) 2 years ago?
This questions was previously asked in
SSC MTS 22nd October 2021 Shift-1
6,30,000
Incorrect Answer2,16,000
Incorrect AnswerExplanation:
To find the car's value 2 years ago, considering it depreciates at 25% per annum, we need to calculate the value backwards.
- Depreciation rate: 25% per annum means the car retains 75% of its value each year.
- Current Value: Rs 5,40,000.
Using the formula for calculating the previous value considering depreciation:
- Two years ago:
Value = Present Value / (0.75^2)
= 5,40,000 / (0.5625)
= 9,60,000.
So, two years ago, the car's value was Rs 9,60,000.
- Option 1: 9,60,000
- Option 2: 7,20,000
- Option 3: 6,30,000
- Option 4: 2,16,000
Correct Answer: Option 1 - 9,60,000
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By: santosh