1. The cost of bike depreciates every year by15% of its value at the b

1.	1. The cost of bike depreciates every year by15% of its value at the beginning of theyears. If the present cost of bike is ? 40000,find its cost after two years.
Answer» Present cost of bike = 40000 Given P = 40000, R = 15, n = 2 Cost after two years= P(1 - R/100)^n= 40000(1 - 15/100)^2 = 40000(1 - 3/20)^2 = 40000(17/20)^2 = 40000(.85*.85)= 40000(.7225) = 28900 Cost of bike after 2 years = Rs 28900 thanks

1. The cost of bike depreciates every year by15% of its value at the beginning of theyears. If the present cost of bike is ? 40000,find its cost after two years.

Answer»

Present cost of bike = 40000

Given P = 40000, R = 15, n = 2

Cost after two years= P(1 - R/100)^n= 40000(1 - 15/100)^2 = 40000(1 - 3/20)^2 = 40000(17/20)^2 = 40000(.85*.85)= 40000(.7225) = 28900

Cost of bike after 2 years = Rs 28900

thanks