Solutions
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:
- Mr. Durani bought a plot of land for Rs. 80,000.
- He also bought a car for Rs. 3,320,000 at the same time.
- The value of the plot of land grows uniformly at the rate of 30% per annum.
- The value of the car depreciates by 20% in the first year and by 15% per annum thereafter.
- 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
