Math Problem Statement

1. A new computer costs ₹1,00,000. The depreciation of computers is very high as new models with better technological advantages are coming into the market. The depreciation is as high as 40% every year. How much will the cost of the computer be after two years? 2. The present value of a car is ₹75,000. Its value depreciates every year by 15%. What will be its value after 3 years?

Solution

Let's solve both questions step by step:


Question 1: Depreciation of a computer

  • Initial cost = ₹1,00,000
  • Depreciation rate = 40% per year
  • We need to find the cost after 2 years.

The formula for depreciation is:
A=P(1r)tA = P(1 - r)^t
Where:

  • AA = Value after tt years
  • PP = Initial value (₹1,00,000)
  • rr = Depreciation rate (40% = 0.4)
  • tt = Number of years (2 years)

Substitute the values:
A=1,00,000(10.4)2A = 1,00,000(1 - 0.4)^2 A=1,00,000(0.6)2A = 1,00,000(0.6)^2 A=1,00,000(0.36)A = 1,00,000(0.36) A=36,000A = ₹36,000

Answer: The cost of the computer after 2 years will be ₹36,000.


Question 2: Depreciation of a car

  • Initial value = ₹75,000
  • Depreciation rate = 15% per year
  • We need to find the value after 3 years.

Use the same formula:
A=P(1r)tA = P(1 - r)^t
Where:

  • PP = ₹75,000
  • rr = 15% = 0.15
  • tt = 3 years

Substitute the values:
A=75,000(10.15)3A = 75,000(1 - 0.15)^3 A=75,000(0.85)3A = 75,000(0.85)^3

First, calculate 0.8530.85^3:
0.853=0.6141250.85^3 = 0.614125

Now calculate AA:
A=75,000×0.614125A = 75,000 \times 0.614125 A46,059.38A ≈ ₹46,059.38

Answer: The value of the car after 3 years will be approximately ₹46,059.38.


Summary of Answers:

  1. The cost of the computer after 2 years: ₹36,000
  2. The value of the car after 3 years: ₹46,059.38

Let me know if you'd like further clarifications or a detailed explanation for any step!


Related Questions:

  1. How do you calculate the depreciation value for any given time period?
  2. What happens if depreciation rates are compounded quarterly instead of annually?
  3. How do you find the depreciation rate if the initial and final values are known?
  4. How can you calculate the number of years required for a value to depreciate to half?
  5. How is depreciation different for straight-line and compound methods?

Tip:

Depreciation calculations use the concept of exponential decay, so understanding the formula A=P(1r)tA = P(1 - r)^t is crucial for solving similar problems.

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Math Problem Analysis

Mathematical Concepts

Exponential Decay
Depreciation Calculation

Formulas

A = P(1 - r)^t

Theorems

Compound Interest Formula (modified for depreciation)

Suitable Grade Level

Grades 8-10