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Learn in your speed, with individual attention - Teachoo Maths 1-on-1 Class


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Example 10 A TV was bought at a price of Rs 21,000. After one year the value of the TV was depreciated by 5% (Depreciation means reduction of value due to use and age of the item). Find the value of the TV after one year.TV was bought for Rs 21000 So, P = Rs 21000 Also, TV depreciated by 5% in one year Depreciated means value is decreased So, we Put a Minus sign in rate Rate = −5% Also, Rate is compounded So we use the formula A = P (𝟏+𝑹/𝟏𝟎𝟎)^𝒏 Here, P = 21000 R = –5 % N = Number of years = 1 Putting Values in Formula A = 21000 (𝟏+((−𝟓))/𝟏𝟎𝟎)^𝟏 A = 21000 (1−5/100) A = 21,000 × (1−1/20) A = 21,000 × ((20 − 1)/20) A = 21,000 × 𝟏𝟗/𝟐𝟎 A = 2100/2 × 19 A = 1050 × 19 A = 19950 Value of the TV after one year = Rs 19,950

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Davneet Singh

Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 13 years. He provides courses for Maths, Science, Social Science, Physics, Chemistry, Computer Science at Teachoo.