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?
Answer & explanation
Correct answer: option 1
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