Sanjay purchase a hotel worth Rs. 10 lakh and barkha purchased a car worth Rs. 16 lakh. The Value of hotel every year increases by 20% of the previous value and the value of car every year depreciates by 25% . What is the difference between the price of hotel and car after 3 years ?

Options

A. Rs. 925000
B. Rs. 10,53,000
C. remains contant
D. can't be determined.

Answer

To solve the problem, we need to calculate the value of the hotel and the car after 3 years and then find the difference between these two values.

### Step 1: Calculate the value of the hotel after 3 years
The initial value of the hotel is Rs. 10,00,000. The hotel appreciates by 20% each year.

1. **Year 1:**
- Value after 1 year = Initial Value + (20% of Initial Value)
- Value after 1 year = 10,00,000 + (0.20 * 10,00,000) = 10,00,000 + 2,00,000 = Rs. 12,00,000

2. **Year 2:**
- Value after 2 years = Value after 1 year + (20% of Value after 1 year)
- Value after 2 years = 12,00,000 + (0.20 * 12,00,000) = 12,00,000 + 2,40,000 = Rs. 14,40,000

3. **Year 3:**
- Value after 3 years = Value after 2 years + (20% of Value after 2 years)
- Value after 3 years = 14,40,000 + (0.20 * 14,40,000) = 14,40,000 + 2,88,000 = Rs. 17,28,000

### Step 2: Calculate the value of the car after 3 years
The initial value of the car is Rs. 16,00,000. The car depreciates by 25% each year.

1. **Year 1:**
- Value after 1 year = Initial Value - (25% of Initial Value)
- Value after 1 year = 16,00,000 - (0.25 * 16,00,000) = 16,00,000 - 4,00,000 = Rs. 12,00,000

2. **Year 2:**
- Value after 2 years = Value after 1 year - (25% of Value after 1 year)
- Value after 2 years = 12,00,000 - (0.25 * 12,00,000) = 12,00,000 - 3,00,000 = Rs. 9,00,000

3. **Year 3:**
- Value after 3 years = Value after 2 years - (25% of Value after 2 years)
- Value after 3 years = 9,00,000 - (0.25 * 9,00,000) = 9,00,000 - 2,25,000 = Rs. 6,75,000

### Step 3: Calculate the difference between the values after 3 years
Now we find the difference between the value of the hotel and the car after 3 years.

- Difference = Value of Hotel - Value of Car
- Difference = 17,28,000 - 6,75,000 = Rs. 10,53,000

### Final Answer
The difference between the price of the hotel and the car after 3 years is Rs. 10,53,000.

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