Glenn Bought A Car For Php600,000. The Yearly Depreciation Of His Car Is 10 Percent Of Its Value At The Start Of The Year. What Is Its Value After 4 Y

Glenn bought a car for Php600,000. The yearly depreciation of his car is 10 percent of its value at the start of the year. What is its value after 4 years?

a. Php437,400
b. Php438,000
c. Php393,660
d. Php378,000

 

C. Php393,660

1st yr - 600,000 x 10% = 60,000

600,000 - 60,000 = 540,000

2nd yr - 540,000 x 10% = 54,000

540,000 - 54,000 = 486,000

3rd yr - 486,000 x 10% = 48,600

486,000 - 48,600 = 437,400

4th yr - 437,400 x 10% = 43,740

437,400 - 43,740 = 393,660

Thus, the cars value after 4 yrs. is Php393,660.


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