Correct Answer - Option 2 : A and C

**Given: **

CP = Rs. 45000

Value depreciates by 20% in the first year and 15% in subsequent years

Selling price in 3^{rd} year = Rs. n

**Formula Used: **

Profit% = (Profit /CP) × 100

SP = {(100 + P%)/100} × CP

Loss = CP – SP

Where P → Profit, CP → cost price, SP → selling price.

Price = [(100 – depreciation%)/100] × original price

**Calculation:**

Price after first year = 80% of 45000

Price after second year = 85% of (80% of 45000)

Price after third year = 85% of (85% of (80% of 45000))

⇒ (85/100) × (85/100) × (80/100) × 45000

⇒ (85/100) × 85 × 8 × 45

⇒ 26010

⇒ **n = 26010**

The cost price for the customer = Rs. 26010

A. Loss incurred is Rs. 18990

Loss = CP – Price after third year

⇒ 45000 – 26010

⇒ 18990

⇒ A is correct

B. The cost price after first year is Rs. 35000

Price after first year = (80/100) of 45000

⇒ 36000

⇒ B is incorrect

C. n = 26010

⇒ n = Price after third year

⇒ 26010

⇒ C is correct

D. Price after second year = 26020

Price after second year = 85% of 36000

⇒ (85/100) × 36000

⇒ Rs. 30600

⇒ D is incorrect

**∴ ****A and C are correct.**