Question

Mohan purchased a house for Rs. 30000 and its value is depreciating at the rate of 25% per year. Find the value of the house after 3 years.

Answer 1

Given, 

Price of house = Rs.30000 

Depreciating rate = 25% per year 

Value of house after 3 years \(= 30000\times({1}+\frac{25}{100})({1}+\frac{25}{100})({1}+\frac{25}{100})\)

\(= 30000\times\frac{5}{4}\times\frac{5}{4}\times\frac{5}{4}\) = Rs. 12656.25