Question:
Mohan purchased a house for Rs 30000 and its value is depreciating at the rate of 25% per year. Find the value of the house after 3 years.
Solution:
Value of the house after three years $=\mathrm{P}\left(1-\frac{\mathrm{R}}{100}\right)^{\mathrm{n}}$
$\Rightarrow 30,000\left(1-\frac{25}{100}\right)^{3}$
$=30,000(0.75)^{3}$
$=12,656.25$
Thus, the value of the house after three years will be Rs $12,656.25$.