A motorcycle costs Tk. 2500 when it is brand new. At the end of each year it is worth 4/5 of what it was at the beginning of the year. What is the motorcycle worth when it is 3 years old?

A    Tk. 1,000

B    Tk. 1,280

C    Tk. 1,340

D    Tk. 1,430

Solution

Correct Answer: Option B

 

A motor cycle costs Tk. 2500 when it is new. '

At the end of each year it is worth 4/5th of its beginning value.

at the end of 1st year -> 2500*4/5 = 2000

at the end of 2nd year -> 2000*4/5 = 1600

At the end of 3rd year -> 1600*4/5 = 1280

 

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