#### The value of a property decreases every year at the rate of 5%. If its present value is ₹ 411540, what was its value three years ago?

**Solution:**

It is given that

Present value of property = ₹ 411540

Rate of decrease = 5% p.a.

We know that

Value of property 3 years ago = A ÷ (1 – r/100)^{n}

Substituting the values

= 411540 ÷ (1 – 5/100)^{3}

By further calculation

= 411540 ÷ (19/20)^{3}

So we get

= 411540 × 20/19 × 20/19 × 20/19

= ₹ 480000

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