## Mr. Durani bought a plot of land for ₹180000 and a car for ₹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?

Q. Mr. Durani bought a plot of land for ₹180000 and a car for ₹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?

Growth of plot of land after 3 years $V_{\text{land}} = 180000 \times \left(1 + \frac{30}{100}\right)^{3} = 180000 \times \left(\frac{13}{10}\right)^{3} = 180000 \times \frac{2197}{1000} = \text{₹} 395460$ Depreciation of car after 3 years $V_{\text{car}} = 320000 \times \left(1 – \frac{20}{100}\right) \times \left(1 – \frac{15}{100}\right)^{2} = 320000 \times \frac{80}{100} \times \left(\frac{85}{100}\right)^{2} = \text{₹} 184960$ Total initial investment $\text{Total Initial Investment} = 180000 + 320000 = \text{₹} 500000$ Total value after 3 years $\text{Total Value after 3 Years} = 395460 + 184960 = \text{₹} 580420$ Profit or Loss $\text{Profit or Loss} = 580420 – 500000 = \text{₹} 80420$