A property decreases in value every year at the rate of 6 1/4% of its value at…
2023
A property decreases in value every year at the rate of 6 1/4% of its value at the beginning of the year its value at the end of 3 years was Rs.21093. Find its value at the beginning of the first year?
Answer: C. Rs. 25,600 — Let the value at the beginning be P. The annual decrease is 6 1/4% = 6.25% = 1/16, so the remaining factor each year is 1 − 1/16 = 15/16. Value after 3 years…
- A.
Rs. 24,000
- B.
Rs. 25,000
- C.
Rs. 25,600
- D.
Rs. 26,200
Attempted by 24 students.
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Correct answer: C
Let the value at the beginning be P. The annual decrease is 6 1/4% = 6.25% = 1/16, so the remaining factor each year is 1 − 1/16 = 15/16.
Value after 3 years = P × (15/16)^3.
Given this equals Rs. 21,093, so P = 21,093 × (16/15)^3 = 21,093 × 4096/3375 = 86,396,928/3,375 ≈ 25,599.09.
Rounding to the nearest rupee (or comparing to the given choices) gives Rs. 25,600.
Answer: Rs. 25,600 (closest to the computed value Rs. 25,599.09).