Initial value of a car is Rs.20000. The value of car depreciated by 20% of its initial value each year. What will be its value after 3 years ?
Answer & explanation
Correct answer: option 4
Decreased value = 20000 × \(\frac{80}{100}\) × \(\frac{80}{100}\) × \(\frac{80}{100}\)
= 20000 × \(\frac{4}{5}\) × \(\frac{4}{5}\) × \(\frac{4}{5}\)
= 10240