Grace bought a new van for Rs. 15000 . Each year, the value of her car depreciated by . Calculate the value of the car before 2 years.

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12150

22150

32150

42150

answer is A.

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Detailed Solution

Concept- Before two years, we should know that depreciation can be estimated using its formula to determine the value of the car, which is Question Image

, where P stands for the starting principal balance, r for the depreciation rate, and n for the number of depreciations.
As stated in the question, Grace spent Rs. 15,000 for a brand-new van. Each year, the value of a car decreases by

. Before two years, we need to determine the car's value.
We are aware that the formula can be used to determine the depreciation of a valuable item Question Image

Where represents the object's initial principal balance, represents the object's depreciation rate, and represents the frequency of depreciation.
In light of the query, we can see that,

Rs.

and

years.
So, Question Image

, where A stands for the car's worth prior to two years.
Question Image

We'll now simplify it even more to determine the car's worth.
Question Image

Therefore, the car's worth prior to two years will be Rs. 12150.
Hence, the correct answer is option 1.
Syllabus: CBSE

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