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BBA Tuition > The present price of a car is Rs.7290. The value decreased...
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The present price of a car is Rs.7290. The value decreased 10% every year. Find the value of car 3 years back?

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Commerce Teacher

Rs 10,000.
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Let the price of the car at beginning of year 1 be x At the end of first year = x-0.1x=0.9x At the end of second year = 0.9x- 0.9x*0.1= 0.81x At the end of third year = 0.81x-0.81*0.1 =0.729x It is also given that price of the car at the end of third year is 7290 therefore equate the two values 0.729x=7290 Solving...
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Let the price of the car at beginning of year 1 be x At the end of first year = x-0.1x=0.9x At the end of second year = 0.9x- 0.9x*0.1= 0.81x At the end of third year = 0.81x-0.81*0.1 =0.729x It is also given that price of the car at the end of third year is 7290 therefore equate the two values 0.729x=7290 Solving above equation X=Rs. 10,000 read less
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Innovative Teacher , concept builder and result oriented coaching.

Just keep dividing 7290 by 0.9 in excel sheet three times. Its Rs. 10,000 simple, isn't it.
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NOT JUST LEARN, PLAY WITH ACCOUNTS, LAW AND TAX

Let the value of car be Rs 100 3 years back. After deducting 10% depreciation under WDV (written down value method) it would be 100-10% i.e =100-10 =90. 2nd year again the same processes 90-10%= 81. 3rd year 81-10%=72.9. Therefore the present value of car is RS 72.9 when the actual value of car was Rs-100. and...
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Let the value of car be Rs 100 3 years back. After deducting 10% depreciation under WDV (written down value method) it would be 100-10% i.e =100-10 =90. 2nd year again the same processes 90-10%= 81. 3rd year 81-10%=72.9. Therefore the present value of car is RS 72.9 when the actual value of car was Rs-100. and if the present value of car is RS-7290 then 3 years back value would be 7290*100/72.9 =Rs 10,000. read less
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Experienced Math teacher with 5 years of Experience

7290(1-0.1)^3.
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Rs.10000/- reduces to Rs.9000/- after one year. Then Rs.8100/- and finally Rs.7290/- after three years.
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Rs. 5314.41.
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The current value is Rs. 7290. Say 3 yrs back price was x. Depreciation x*10% or we can say value after depreciation is x*90%. So depreciated value after 3 years= x* 0.9*0.9*0.9 = Rs. 7290. Solving this we get: X= 10,000.
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