Dinesh purchased a scooter for ₹24000. The value of scooter is depreciating at the rate of 5% per annum. Calculate its value after 3 years.

Depreciation formula,

V = $V_0\Big(1 - \dfrac{r}{100}\Big)^n$

Putting values in formula we get,

$V = ₹24000\Big(1 - \dfrac{5}{100}\Big)^3 \\[1em] = ₹24000 \times \Big(\dfrac{95}{100}\Big)^3 \\[1em] = ₹24000 \times \Big(\dfrac{19}{20}\Big)^3 \\[1em] = ₹24000 \times \dfrac{19}{20} \times \dfrac{19}{20} \times \dfrac{19}{20} \\[1em] = ₹\dfrac{24000 \times 6859}{8000} \\[1em] = ₹(3 \times 6859) \\[1em] = ₹20577.$

Hence, the value of scooter after 3 years = ₹20577.