Two years ago, the value of my motorbike was `Rs. 62500`. If the value depreciates by `4%` every year, now its value is

Options

A. `Rs.56700`
B. `Rs. 57600`
C. `Rs.57500`
D. `Rs.55700`

Answer

To find the current value of the motorbike, we need to calculate the depreciation over the last two years. The motorbike's value depreciates by 4% each year.

### Step-by-Step Solution:

1. **Identify the initial value and the depreciation rate**:
- Initial value of the motorbike (2 years ago) = Rs. 62500
- Depreciation rate = 4% per year

2. **Calculate the depreciation factor**:
- The depreciation factor for one year can be calculated as:
\[ \text{Depreciation Factor} = 1 - \frac{\text{Depreciation Rate}}{100} = 1 - 0.04 = 0.96 \]

3. **Calculate the value after the first year**:
- Value after 1 year = Initial value × Depreciation Factor
\[ \text{Value after 1 year} = 62500 \times 0.96 = 60000 \]

4. **Calculate the value after the second year**:
- Value after 2 years = Value after 1 year × Depreciation Factor
\[ \text{Value after 2 years} = 60000 \times 0.96 = 57600 \]

5. **Final value of the motorbike now**:
- Therefore, the current value of the motorbike is Rs. 57600.

### Final Answer:
The current value of the motorbike is **Rs. 57600**.

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