 Hello and welcome to the session. In this session we are going to discuss the following question and the question says that the value of a car is $50,000 at present. If the value depreciates 8% in the first year, 6% in the second year, what will be the depreciated value after 2 years? If the rate of interest is different say r1 and r2 for 2 successive years, then amount A is equal to P into 1 plus r1 upon 100 into 1 plus r2 upon 100. If the value depreciates, then amount A is equal to P into 1 minus r1 upon 100 into 1 minus r2 upon 100. With this key idea let us proceed with the solution. According to the question we have to find the depreciated value of a car after 2 years if the present value of the car is $50,000 and the value depreciates 8% in the first year and 6% in the second year. Let the value of the car be equal to the principle that is P is equal to $50,000. The rates of interest are r1 equal to 8% per annum for first year r2 equal to 6% per annum for second year. Then as the value of the car depreciates therefore amount is equal to P into 1 minus r1 upon 100 into 1 minus r2 upon 100. So here the amount A is equal to 50,000 into 1 minus 8 upon 100 into 1 minus 6 upon 100 dollars which is equal to 50,000 into 100 minus 8 upon 100 into 100 minus 6 upon 100 dollars that is equal to 50,000 into 92 upon 100 into 94 upon 100 dollars. After cancelling all the zeros we obtain this is equal to 5 into 92 into 94 dollars which is equal to 43,240 dollars. So the depreciated value of the car after two years will be 43,240 dollars which is our answer. This completes our session. Hope you enjoyed the session.