# Punit bought an A.C. costs Rs. 45000. Its value depreciates by 20% in the first year and in each subsequent year the depreciation is 15% of the value

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Punit bought an A.C. costs Rs. 45000. Its value depreciates by 20% in the first year and in each subsequent year the depreciation is 15% of the value at the beginning of that year. At end of third year he sells the AC to a customer for Rs. n. Which of the following is correct?

A. Loss incurred is Rs. 18990

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

C. n = 26010

D. Price after second year = Rs. 26020

1. Only A
2. A and C
3. B and D
4. A, B, and C

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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 3rd 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.