A car is purchased for Rs 348000. Its value depreciates at 10% per annum during the first year and at 20% per annum during the second year. What will be its value after 2 years?

Answer

To find the value of the car after 2 years of depreciation, we will follow these steps:

### Step 1: Calculate the value after the first year

1. **Initial Value of the Car**: Rs. 348,000
2. **Depreciation for the First Year**: 10%

To find the value after the first year, we can use the formula:
\[ \text{Value after 1 year} = \text{Initial Value} \times (1 - \text{Depreciation Rate}) \]
\[ \text{Value after 1 year} = 348000 \times (1 - 0.10) \]
\[ \text{Value after 1 year} = 348000 \times 0.90 \]
\[ \text{Value after 1 year} = 313200 \]

### Step 2: Calculate the value after the second year

1. **Value at the beginning of the second year**: Rs. 313,200
2. **Depreciation for the Second Year**: 20%

Now, we find the value after the second year using the same formula:
\[ \text{Value after 2 years} = \text{Value after 1 year} \times (1 - \text{Depreciation Rate}) \]
\[ \text{Value after 2 years} = 313200 \times (1 - 0.20) \]
\[ \text{Value after 2 years} = 313200 \times 0.80 \]
\[ \text{Value after 2 years} = 250560 \]

### Final Answer

The value of the car after 2 years will be **Rs. 250,560**.

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