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Mr Durani bought a plot of land solved.

Question: Mr. Durani bought a plot of land for RS.180000 and a car for RS. 320000 at the same time. The value of the plot of land grows uniformly at the rate of 30% p.a., while the value of the car depreciates by 20% in the first year and by 15% p.a. thereafter. If he sells the plot of land as well as the car after 3 years, what will be his profit or Loss?

Let’s break down the information provided:

  1. Mr. Durani bought a plot of land for Rs. 80,000.
  2. He also bought a car for Rs. 3,320,000 at the same time.
  3. The value of the plot of land grows uniformly at the rate of 30% per annum.
  4. The value of the car depreciates by 20% in the first year and by 15% per annum thereafter.
  5. He plans to sell both the plot of land and the car after 3 years.

Now, let’s calculate the values after each year:

Answer:

Current value of a plot = Rs. 180000

Rate of growth of plot = 30%

Time = 3 years

Let value of a plot after 3 years is P= Current value of a plot 1+301003

⇒ P =18000013103=Rs. 395460

Current value of a car = Rs. 320000

Rate of depreciation of car =20% per annum at first year, 15% per annum after first year.

Time =3 years

Value of car after 3 years = Current value of a car1-201001-151002

=32000080100851002

= Rs. 184960

Total amount he spent while purchasing car and plot is =180000+320000= Rs. 500000

Total worth of plot and car together after 3 years =395460+184960

= Rs. 580420

Overall profit =580420-500000

= Rs. 80240

Therefore, the overall profit is = Rs. 80240

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