Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Financial Mathematics

Question:

Every year the price of a motorcycle depreciates by Rs. 15000. After 12 years its price has become Rs. 50000. Then its original cost was:

Options:

Rs. 1,80,000

Rs. 2,15,000

Rs. 2,30,000

Rs. 2,45,000

Correct Answer:

Rs. 2,30,000

Explanation:

The correct answer is Option (3) → Rs. 2,30,000 **

$\text{Depreciation per year} = 15000$

$\text{Total depreciation in 12 years} = 15000 \times 12 = 180000$

$\text{Original cost} = 50000 + 180000 = 230000$

The original cost of the motorcycle was Rs. 230000.