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A factory in Ludhiana buys the machine shown. Its value falls by 10% in Year 1 and by 20% in Year 2, each time on the value at the start of that year. What is it worth after 2 years?

Class 8Compound InterestComparing Quantities
  • A₹ 87,500
  • B₹ 1,12,500
  • C₹ 90,000
  • D₹ 1,00,000

Step-by-Step Solution

After Year 1: . After Year 2: . (₹ 87,500 wrongly takes 30% off the original price.)
Answer: C) ₹ 90,000

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