A motorcycle was purchased for Rs. 48000. If its value depreciates every year by 10%, calculate the total depreciation in its value at the end of 3 years
To calculate the total depreciation in the value of the motorcycle at the end of 3 years, we need to calculate the annual depreciation and then multiply it by the number of years.
Step 1: Calculate the annual depreciation
The motorcycle depreciates by 10% each year, so the value decreases to 90% (100% - 10%) of its original value each year.
Annual depreciation = Original value of the motorcycle * Depreciation rate
= Rs. 48000 * 0.10
= Rs. 4800
Step 2: Calculate the total depreciation
To calculate the total depreciation at the end of 3 years, we multiply the annual depreciation by the number of years.
Total depreciation = Annual depreciation * Number of years
= Rs. 4800 * 3
= Rs. 14400
Therefore, the total depreciation in the value of the motorcycle at the end of 3 years is Rs. 14400.
To calculate the total depreciation in value of the motorcycle at the end of 3 years, we need to determine the depreciation amount for each year and then add them together.
First, let's calculate the depreciation amount for each year. The motorcycle's value depreciates by 10% every year. This means its value reduces to 90% (100% - 10%) of the previous year's value.
Year 1: Value depreciates to 90% of Rs. 48000
Depreciation in Year 1 = 10% of 48000 = Rs. 4800
Year 2: Value depreciates to 90% of the value at the end of Year 1
Depreciation in Year 2 = 10% of (48000 - 4800) = Rs. 4320
Year 3: Value depreciates to 90% of the value at the end of Year 2
Depreciation in Year 3 = 10% of (48000 - 4800 - 4320) = Rs. 3888
Now, let's calculate the total depreciation in value at the end of 3 years by summing up the depreciation amounts for each year:
Total depreciation = Depreciation in Year 1 + Depreciation in Year 2 + Depreciation in Year 3
Total depreciation = Rs. 4800 + Rs. 4320 + Rs. 3888
Total depreciation = Rs. 13008
Therefore, the total depreciation in the value of the motorcycle at the end of 3 years is Rs. 13008.
Wrong
value at end of 3 years
= 48000(.9)^3
= 34992
state your conclusion