The price of motorcycle depreciates every year by 8%. If the value of the motorcycle after 2 years will be Rs. 84640, then what is the present value (in Rs.) of the motorcycle ?

Answer : Option C

Explanation :

$A=Pleft(1-frac{R}{100} ight)^{T}$ $Rightarrow 84640=mathrm{P}left(1-frac{8}{100} ight)^{2}$ $Rightarrow 84640=mathrm{P}left(1-frac{2}{25} ight)^{2}$ $Rightarrow 84640=mathrm{P}left(frac{23}{25} ight)^{2}$ $Rightarrow mathrm{P}=frac{84640 imes 25 imes 25}{23 imes 23}=$ Rs. 100000 Alternative: Fraction of $8 \%=frac{8}{100}$ According to the question,

Present value of motorcycle