A mobile phone bought for Rs. 25000. The value of the mobile phone depreciates by 5% per annum due to its use. The value of the mobile phone after 2 years will be?

Rs.22562.50 Rs.23842.50 Rs.21546.50 Rs.24800.50

Rs.22562.50

Every year the value depreciates by 5%. This means that value will be 100%-5% = 95% at the end of the year. After two years = 25000 x \(\frac{ 95 }{100}\) x \(\frac{ 95 }{100}\) Answer = Rs.22562.50