A generator worth Rs. 120,000 depreciates by 20% in the first year and by 15% per annum on its reducing value thereafter. What is its value after 3 years?
Correct answer C. Rs. 69,360
Explanation
Value = 120000 × 0.80 × 0.85 × 0.85 = 120000 × 0.578 = Rs. 69,360. Year by year: 120000 → 96000 → 81600 → 69360.
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