The cost of a scooter depreciates every year by 15% of its value at the beginning of the year. If the present cost of the scooter is ₹ 8,000, find its cost :

(i) after one year

(ii) after 2 years.

Given:

Cost of the scooter = ₹ 8,000

Depreciation in cost of scooter in 1st year = 15%

(i) After one year

Depreciation in cost of scooter = 15 % of 8,000

= $\dfrac{15}{100} \times 8,000$

= $\dfrac{1,20,000}{100}$

= $1,200$

Cost of the scooter after depreciation = Original Cost - Depreciation

= ₹ (8,000 - 1,200)

= ₹ 6,800

Cost of scooter after one year = ₹ 6,800.

(ii) After 2 years.

Depreciation in cost of scooter after 2 years = 15 % of 6,800

= $\dfrac{15}{100} \times 6,800$

= $\dfrac{1,02,000}{100}$

= $1,020$

Cost of the scooter after depreciation = Cost after 1 year - Depreciation

= ₹ (6,800 - 1,020)

= ₹ 5,780

Cost of scooter after two year = ₹ 5,780.