The value of a car depreciates every year by 10%. What will be its value after 3 years if its present value is ₹6,25,000?

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Accepted Answer

#### Step 1: Understand Depreciation
The car's value decreases by **10% annually**, which means the remaining value after each year is **90%** of its previous value.

#### Step 2: Formula for Depreciation
The formula to calculate the depreciated value after $$ n $$ years is:  
$$
	ext{Final Value} = 	ext{Initial Value} 	imes (1 - 	ext{Depreciation Rate})^n
$$

#### Step 3: Substitute Values
Given:  
- Initial Value = ₹6,25,000  
- Depreciation Rate = 10% = 0.10  
- Number of Years = 3

Using the formula:  
$$
	ext{Final Value} = 625000 	imes (1 - 0.10)^3 = 625000 	imes (0.90)^3
$$

Simplify:  
$$
	ext{Final Value} = 625000 	imes 0.729 = ₹4,55,625
$$

#### Step 4: Verify Results with Code
The code calculation confirms that the final value after depreciation is **₹4,55,625**.

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Thus, the correct answer is **(c) ₹4,55,625**.

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