The cost of a scooter is Rs. 10000. Its value depreciates at the rate of 8% per annum . Calculate the total depreciation in its value at the end of 2 years.

Options

A. Rs. 1536
B. Rs. 1356
C. Rs. 1653
D. Rs. 1356

Explanation

To calculate the total depreciation in the value of the scooter at the end of 2 years, we will follow these steps:

### Step 1: Identify the initial cost of the scooter and the depreciation rate.
- Initial cost of the scooter = Rs. 10,000
- Depreciation rate = 8% per annum

### Step 2: Calculate the depreciation for the first year.
To find the depreciation for the first year, we use the formula:
\[ \text{Depreciation for Year 1} = \text{Initial Cost} \times \left( \frac{\text{Depreciation Rate}}{100} \right) \]

Substituting the values:
\[ \text{Depreciation for Year 1} = 10000 \times \left( \frac{8}{100} \right) = 10000 \times 0.08 = Rs. 800 \]

### Step 3: Calculate the value of the scooter at the end of the first year.
To find the value of the scooter after the first year, we subtract the depreciation from the initial cost:
\[ \text{Value after Year 1} = \text{Initial Cost} - \text{Depreciation for Year 1} \]
\[ \text{Value after Year 1} = 10000 - 800 = Rs. 9200 \]

### Step 4: Calculate the depreciation for the second year.
Now, we calculate the depreciation for the second year based on the new value of the scooter:
\[ \text{Depreciation for Year 2} = \text{Value after Year 1} \times \left( \frac{\text{Depreciation Rate}}{100} \right) \]
\[ \text{Depreciation for Year 2} = 9200 \times \left( \frac{8}{100} \right) = 9200 \times 0.08 = Rs. 736 \]

### Step 5: Calculate the total depreciation over 2 years.
Now, we add the depreciation from both years to find the total depreciation:
\[ \text{Total Depreciation} = \text{Depreciation for Year 1} + \text{Depreciation for Year 2} \]
\[ \text{Total Depreciation} = 800 + 736 = Rs. 1536 \]

### Final Answer:
The total depreciation in the value of the scooter at the end of 2 years is Rs. 1536.

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