Question 1✱✱
- (a)
A used car was purchased at ₦900,000.00. Its value depreciated by in the first year. In each subsequent year, the depreciation was of its value at the beginning of that year. If the car was bought on 1st March, 2011, calculate, correct to the nearest hundred naira, the value of the car on 28th February, 2015.
Worked solution (try it first)
- After the first year the car has lost , so it is worth of ₦900,000: , which is ₦630,000.
- In each later year it loses of its value at the start of that year, so each year multiplies the value by .
- 1st March 2011 to 28th February 2015 is 4 full years: the first year, then 3 more.
- Value, which is ₦299,000 to the nearest hundred naira.