A scooter costs 25, 000 when it is brand new. At the end of each year, its value is only 80% of what it was at the beginning of the year. What is the value of the scooter at the end of 3 years?

Options

A. 10000
B. 12500
C. 12800
D. 12000

Answer

To find the value of the scooter at the end of 3 years, we will follow these steps:

### Step 1: Understand the depreciation
The scooter's value decreases to 80% of its value at the beginning of each year. This means that at the end of each year, the scooter retains 80% of its value.

### Step 2: Calculate the value at the end of Year 1
- Initial value of the scooter = ₹25,000
- Value at the end of Year 1 = 80% of ₹25,000
\[ \text{Value at end of Year 1} = 25000 \times 0.80 = 20000 \]

### Step 3: Calculate the value at the end of Year 2
- Value at the beginning of Year 2 = ₹20,000
- Value at the end of Year 2 = 80% of ₹20,000
\[ \text{Value at end of Year 2} = 20000 \times 0.80 = 16000 \]

### Step 4: Calculate the value at the end of Year 3
- Value at the beginning of Year 3 = ₹16,000
- Value at the end of Year 3 = 80% of ₹16,000
\[ \text{Value at end of Year 3} = 16000 \times 0.80 = 12800 \]

### Final Answer
The value of the scooter at the end of 3 years is **₹12,800**.

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