Yop! I got all ur points but I am having some doubt. Refer the question once again -
1. The market value of a certain machine decreased by 30 percent of its purchase price each year. If the machine was purchased in 1982 for its market value of $8,000, what was its market value two years later?
(A) $8,000
(B) $5,600
(C) $3,200
(D) $2,400
(E) $800
Refer the bold lettered words. I thought the machine was bought in 1982 in its market value of $8000. So in the first year, the decreased market value however would be $8000 and in the second year, it would be 30% of $8000 i.e. $5600.
On the other hand, I took another approach to solve it. It was like -
In first year the market value would be = 70% of $8000 i.e $5600.
And in the second year it would be = 70% of 5600 i.e. 3920.
By this I did not find the suitable option. I would like to know the fault in this approach. Guys pls help me.
By the way, the correct answer given in the test paper is C itself. The way Kajcha solved the problem, is fine to get the answer, but I would like to know where is my my fault in my second approach.
Correct me If I am wrong
Regards,
Amitava
