Mathematics

The value of a car is depreciating at 5% per year and is ₹ 3,15,875 after 2 years. What was its original price ?

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Let the original cost of the car = ₹ 100

∴ Depreciation during 1st year = 5 % of ₹ 100 = $\dfrac{5}{100} \times ₹ 100$ = ₹ 5

Value of the car at the beginning of 2nd year = ₹ 100 - ₹ 5 = ₹ 95

∴ Depreciation during 2nd year = 5 % of ₹ 95 = $\dfrac{5}{100} \times ₹ 95$ = ₹ 4.75

Value of the car at the 2nd year = ₹ 95 - ₹ 4.75 = ₹ 90.25

Now, final value of car = ₹ 90.25, original cost = ₹ 100

⇒ When the value of car during the 2nd year = ₹ 3,15,875

Original cost = $\dfrac{100}{90.25} \times 3,15,875$ = 3,50,000

Hence, the value of car = ₹ 3,50,000.

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