Mohan purchased a house for Rs 30000 and its value is depreciating at the rate of 25% per year. Find the value of the house after 3 years.

Explanation

Given:
Mohan purchased a house for `(P)=Rs.30000`.
Rate `(R)=25%` per annum
Time Period `(n)=3` years.
As the price is depreciating, therefore we will use:
`A=P(1-R/100)^n`
`A=30000(1-25/100)^3`
`A=30000(1-1/4)^3`
`A=30000((4-1)/4)^3`
`A=30000times(3/4)^3`
`A=30000times(27/64)`
`A=468.75times27`
`A=Rs.12656.25`
Hence, the value of tha house after `3` years is `Rs.12656.25`.