JIPMAT 2022 (QA) - The value of a flat worth ₹500,000 is depreciating at the rate of 10% per annum. In how many years will the value be reduced to ₹364,500? | PYQs + Solutions

JIPMAT 2022

Arithmetic

Percentages

Easy

The value of a flat worth ₹500,000 is depreciating at the rate of 10% per annum. In how many years will the value be reduced to ₹364,500?

2 Years

3 Years

3 Years, 6 Months

4 years

Correct Option: 2

For depreciation at rate

r

% per annum for

t

years, value after

t

years

= \text{Initial Value} × (1-\frac{r}{100})^t

\newline

Here,

r = 10

, so value after

t

years

= 500000 × (0.9)^t

500000 × (0.9)^t = 364500

(0.9)^t = \frac{364500}{500000} = 0.729

(0.9)^t=(0.9)^3

t = 3

Therefore, it will take 3 Years for the value to reduce to ₹364,500.