Two years ago, price of my motorbike was Rs.62500. If 4% depreciation occurs every year, then find its present value.

Rs. 57600

     Price (2 years ago) × [1 - \(\frac{4}{100}\)] × [1 - \(\frac{4}{100}\)] = Present value

                                       62500 × \(\frac{96}{100}\) × \(\frac{96}{100}\)  = Present value

                                       62500 × \(\frac{24}{25}\) × \(\frac{24}{25}\)      = Present value

Present value = Rs.57600