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# The resale value of a car depreciates at an annual rate of 12%. If its

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Senior Manager
Joined: 12 Jan 2019
Posts: 263
The resale value of a car depreciates at an annual rate of 12%. If its  [#permalink]

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12 Jan 2019, 08:41
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Difficulty:

45% (medium)

Question Stats:

50% (01:42) correct 50% (01:58) wrong based on 6 sessions

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The resale value of a car depreciates at an annual rate of 12%. If its current resale value is Rs. 1,56,250, then what will be its resale value after 2 years?

a. Rs. 1,21,800
b. Rs. 1,12,800
c. Rs. 1,21,000
d. Rs. 1,30,000
e. Rs. 1,12,900

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Senior Manager
Joined: 12 Jan 2019
Posts: 263
The resale value of a car depreciates at an annual rate of 12%. If its  [#permalink]

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Updated on: 12 Jan 2019, 09:04
$$1,56,250*(\frac{1-12}{100})^2 = 1,21,000$$
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Originally posted by UdayPratapSingh99 on 12 Jan 2019, 08:44.
Last edited by UdayPratapSingh99 on 12 Jan 2019, 09:04, edited 1 time in total.
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Joined: 22 May 2017
Posts: 34
Re: The resale value of a car depreciates at an annual rate of 12%. If its  [#permalink]

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12 Jan 2019, 08:47
UdayPratapSingh99 wrote:
The resale value of a car depreciates at an annual rate of 12%. If its current resale value is Rs. 1,56,250, then what will be its resale value after 2 years?

a. Rs. 1,21,800
b. Rs. 1,12,800
c. Rs. 1,21,000
d. Rs. 1,30,000
e. Rs. 1,12,900

Apply CI and find the depreciated value of the car.

A = P[1- 0.01R]^T

A = 156250 [1- 0.12]^2

A = 121000
Re: The resale value of a car depreciates at an annual rate of 12%. If its   [#permalink] 12 Jan 2019, 08:47
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