Question

The value of a residential flat constructed at a cost of Rs. 1,00,000/- is depreciating at the rate of 10% per annum. What will be its value 3 years after construction ?

Answer 1

$$\textbf{Step 1 : Write the given terms .}$$

$$\text{P = the value of flat initially = Rs. 1,00,000/- }$$

$$\text{r = Rate of depreciation =10 }$$

$$\text{n = time = 3 yr. }$$

$$\textbf{Step 2 : Determining the amount after depreciation after 3 year .}$$

$$\text{Amount after depreciation after 3 yr =}$$ $$\mathbb{P \times {\huge(}1 - \dfrac{r}{100}{\huge)}^{n}}$$

$$ = \mathbb{1,00,000 \times {\huge(}1 - \dfrac{10}{100}{\huge)}^{3}}$$

$$\text{= 72900 Rs .}$$

$$\textbf{Hence , The amount after depreciation after 3 year is 72900 Rs.}$$