Kalyan purchased a Maruti van for Rs. 1,96,000 and the rate of depreciation is 14(2/7) % per annum. Find the value of the van after two years ?

A Rs. 1,24,000

B Rs. 1,44,000

C Rs. 1,32,000

D Rs. 1,62,000

Correct Answer: Option B

Value of Maruti Van, V1 = Rs. 1,96,000
Rate of depreciation, r = 14(2/7)% = 100/7%; Time, t = 2 years
Let V2 is the value after depreciation.

\(V2\;=\;V1\left(1\;-\;\left(\frac{\mathrm r}{100}\right)\right)^\mathrm t\)

V2 = \(19600\left[1\;-\;\left(\frac{\displaystyle\frac{100}7}{100}\right)\right]^2\)

V2 = 196000(6/7)(6/7)

V2 = (196000x36)/49 = Rs. 1,44,000.