The value of a.car depreciates by `15%` each year For a car purchased in 2016 for ₹240000,‘where will be the value of the car at the end of two years? (in ?)

Options

A. 173400
B. 175920
C. 156000
D. 147000

Answer

To find the value of the car after two years of depreciation at a rate of 15% per year, we can follow these steps:

### Step 1: Calculate the value after the first year
The initial value of the car is ₹240,000. Since the car depreciates by 15% each year, we need to find out what 85% of the original value is (100% - 15% = 85%).

\[ \text{Value after 1 year} = \text{Initial Value} \times 0.85 \]
\[ \text{Value after 1 year} = 240,000 \times 0.85 = 204,000 \]

### Step 2: Calculate the value after the second year
Now, we take the value at the end of the first year and again apply the 15% depreciation.

\[ \text{Value after 2 years} = \text{Value after 1 year} \times 0.85 \]
\[ \text{Value after 2 years} = 204,000 \times 0.85 = 173,400 \]

### Conclusion
The value of the car at the end of two years will be ₹173,400.

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