The cost of a car purchased 2 years ago, depreciates at the rate of 20% every year. If its present worth is Rs 315600, find its purchase price.

₹493125

The correct answer is option (1) : ₹493125

Given $S= ₹315600$

$n= 2\, years $

$i = \frac{20}{100}=0.2$

Since $S= P(1-i)^n$

$315600= P(1-0.2)^2$

$P=\frac{315600}{0.64}$

$= 493125$

Hence, the purchase price of car = ₹493125