The value of a car depreciates at the rate of 20% every year. After two years the value of the car will be 24,80,000/-. The original price of the car is:

Correct option is C

Given:

After two years the value of the car = 24,80,000

Depreciation rate =20%

Formula Used:

​$$V = P \times (1 - r)^t$$​​

Solution:

Let the original price of the car be P .

The car depreciates at a rate of 20% per year. Therefore, the value of the car after 2 years is given by the formula:

​$$V = P \times (1 - r)^t$$​​

where V is the value after depreciation,

r is the rate of depreciation (20% = 0.20),

t is the time in years.

Substituting the given values, we have:

2480000 =$$P \times (1 - 0.2)^2$$​​

2480000 = P \times (0.8)^2

2480000 =$$P \times 0.64$$​​

P =$$\frac{2480000}{0.64}$$​ = 3875000

Thus, the original price of the car is 38,75,000 .