Compulsory Mathematics /227

6. Three years ago, the price of a piece of land was Rs [tex]$32,00,000$[/tex] per Ropani. For the first 2 years, the price depreciated by [tex]10\%[/tex] per annum, and in the third year, its value increased by [tex]20\%[/tex].

(a) Which formulae are used for value depreciation and value increment? Write the meaning of each symbol.
(b) What was the price of 1 Aana of land 1 year ago?
(c) What is the price of 4 Aana of land now?
(d) Analyse the price of the land over the past 3 years.

Answers:
(a) Depreciation: [tex]P_T = P \left(1 - \frac{R}{100}\right)^T[/tex]; Growth: [tex]P_T = P \left(1 + \frac{R}{100}\right)^T[/tex]
(b) Rs [tex]1,62,000[/tex]
(c) Rs [tex]7,77,600[/tex]
(d) Rs [tex]31,10,400[/tex] — the price of the land has decreased by [tex]2.8\%[/tex] over the past 3 years



Answer :

Sure, I'll provide a detailed, step-by-step solution. Let's address each part of the question in the order they were asked:

### (a) Formulae for Depreciation and Increment

For depreciation:
[tex]\[ P_T = P \left(1 - \frac{R}{100}\right)^T \][/tex]

- [tex]\(P_T\)[/tex]: Price at time [tex]\(T\)[/tex]
- [tex]\(P\)[/tex]: Initial price
- [tex]\(R\)[/tex]: Rate of depreciation per annum (in percentage)
- [tex]\(T\)[/tex]: Time in years

For increment:
[tex]\[ P_T = P \left(1 + \frac{R}{100}\right)^T \][/tex]

- [tex]\(P_T\)[/tex]: Price at time [tex]\(T\)[/tex]
- [tex]\(P\)[/tex]: Initial price
- [tex]\(R\)[/tex]: Rate of growth per annum (in percentage)
- [tex]\(T\)[/tex]: Time in years

### (b) Price of 1 Aana land before 1 year

1. Initial price 3 years ago: Rs. 3,200,000 per Ropani. Since there are 16 Aana in 1 Ropani, the initial price per Aana is:
[tex]\[ \frac{3,200,000}{16} = 200,000 \, \text{Rs per Aana} \][/tex]

2. Depreciation over the first 2 years:
[tex]\[ P_2 = 3,200,000 \times \left(1 - \frac{10}{100}\right)^2 \][/tex]
This gives us the price after 2 years.

3. Increment in the third year:
[tex]\[ P_3 = P_2 \times \left(1 + \frac{20}{100}\right) \][/tex]
This gives us the price at the end of the third year.

4. Price of one Aana before one year:
[tex]\[ \text{Price per Ropani 1 year ago} = 3,110,400 \, \text{Rs} \][/tex]
[tex]\[ \text{Price per Aana 1 year ago} = \frac{3,110,400}{16} = 194,400 \, \text{Rs per Aana} \][/tex]

### (c) Current price of 4 Aana

1. Price of 1 Aana before 1 year: Rs 194,400
2. Price of 4 Aana:
[tex]\[ \text{Current price of 4 Aana} = 194,400 \times 4 = 777,600 \, \text{Rs} \][/tex]

### (d) Analysis of the land price over the past 3 years

1. Initial price 3 years ago:
[tex]\[ 3,200,000 \, \text{Rs per Ropani} \][/tex]

2. Price before 1 year:
[tex]\[ 3,110,400 \, \text{Rs per Ropani} \][/tex]

3. Total depreciation or increment over 3 years:
[tex]\[ \text{Percentage change} = \left( \frac{\text{Initial price} - \text{Current price}}{\text{Initial price}} \right) \times 100 \][/tex]
[tex]\[ = \left( \frac{3,200,000 - 3,110,400}{3,200,000} \right) \times 100 = 2.8\% \, \text{(decrease)} \][/tex]

So the land, which was initially Rs. 3,200,000 per Ropani, has decreased in value by 2.8% over the last 3 years. The current price is Rs. 3,110,400 per Ropani.