Maths · Arithmetic and Geometric progressions

The cost of a vehicle is Rs. If its value depreciates at the rate of per annum,

The cost of a vehicle is Rs. \( 1,75,000 . \) If its value depreciates at the rate of \( 20 \% \) per annum, then the total depreciation after 3 years will be:

  • A. Rs. 86,400
  • B. Rs. 82,500
  • C. Rs. 84,500
  • D. Rs. 85,400

Step-by-step solution

The vehicle depreciates at 20% per annum on reducing balance. Value after 1 year: 175000 × 0.8 = 140000. After 2 years: 140000 × 0.8 = 112000. After 3 years: 112000 × 0.8 = 89600. Total depreciation = 175000 - 89600 = 85400.
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