Question

Ms. Cherian purchases a boat for Rs. 16000. If the total cost of the boat is depreciating at the rate of 5% per annum, calculate its value after 2 years.

Answer 1

Given, 

Price of boat = Rs.16000 

Depreciation rate = 5% per annum 

So, 

Value of boat after 2 years \(= 16000({1}-\frac{5}{100})({1}-\frac{5}{100})\)

\(= 16000\times\frac{19}{20}\times\frac{19}{20}\) = Rs. 14440