Maths · Arithmetic and Geometric progressions

A company bought a car that had a value of Rs. 10000 . each year the value of th

A company bought a car that had a value of Rs. 10000 . each year the value of the car depreciates by \( 15 \% . \) What is the value of the car at the end of 2 years.

  • A. 7225
  • B. 6225
  • C. 5225
  • D. 4225

Step-by-step solution

The car depreciates by 15% each year, so its value after one year is 10000 × (1 - 0.15) = 8500. After two years, it is 8500 × 0.85 = 7225.
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