Answer :
To determine the value of the car after 2 years of operation, considering a 25% annual depreciation, we can follow these steps:
1. Identify the original price of the car:
- The original price is Rs. 16,50,000.
2. Determine the annual depreciation rate:
- The depreciation rate is 25%. This means that each year the car loses 25% of its value.
3. Calculate the car's value after the first year:
- After one year, the car's value will be reduced by 25%.
- The remaining value after one year will be 75% of the original value.
- Value after 1 year = Original Price × (1 - Depreciation Rate)
- Value after 1 year = 16,50,000 × (1 - 0.25)
- Value after 1 year = 16,50,000 × 0.75
- Value after 1 year = 12,37,500
4. Calculate the car's value after the second year:
- After the second year, the car's value will again be reduced by 25% of the value after the first year.
- The remaining value after the second year will be 75% of the value after the first year.
- Value after 2 years = Value after 1 year × (1 - Depreciation Rate)
- Value after 2 years = 12,37,500 × (1 - 0.25)
- Value after 2 years = 12,37,500 × 0.75
- Value after 2 years = 9,28,125
Therefore, the value of the car after 2 years, considering a 25% annual depreciation, is Rs. 9,28,125.
Thus, the correct answer is d. Rs. 9,28,125.
1. Identify the original price of the car:
- The original price is Rs. 16,50,000.
2. Determine the annual depreciation rate:
- The depreciation rate is 25%. This means that each year the car loses 25% of its value.
3. Calculate the car's value after the first year:
- After one year, the car's value will be reduced by 25%.
- The remaining value after one year will be 75% of the original value.
- Value after 1 year = Original Price × (1 - Depreciation Rate)
- Value after 1 year = 16,50,000 × (1 - 0.25)
- Value after 1 year = 16,50,000 × 0.75
- Value after 1 year = 12,37,500
4. Calculate the car's value after the second year:
- After the second year, the car's value will again be reduced by 25% of the value after the first year.
- The remaining value after the second year will be 75% of the value after the first year.
- Value after 2 years = Value after 1 year × (1 - Depreciation Rate)
- Value after 2 years = 12,37,500 × (1 - 0.25)
- Value after 2 years = 12,37,500 × 0.75
- Value after 2 years = 9,28,125
Therefore, the value of the car after 2 years, considering a 25% annual depreciation, is Rs. 9,28,125.
Thus, the correct answer is d. Rs. 9,28,125.