alleryA television bought for Rs 21,000 depreciates by 5 per cent in a year. What is its value after one year?
ARs 19,900
BRs 20,000
CRs 18,950
DRs 19,950
Answer & Solution
Correct answer: D. Rs 19,950
1. Depreciation is a reduction in value, so the rate is subtracted.
2. Reduction = (5/100) x 21000 = Rs 1,050.
3. Value after one year = 21000 - 1050 = Rs 19,950.
4. Equivalently, value = 21000 x (1 - 5/100) = 21000 x 19/20 = Rs 19,950.
_Source: syllabus Maths Ch7 'Comparing Quantities', Example 10_
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