A car bought for ₹6,00,000 loses 20% of its value every year. What is its value after 2 years?

Explanation

1. 01

   Each year the value becomes 80% of the previous year's value.

2. 02

   Value = $600000 \times 0.8 \times 0.8 = 600000 \times 0.64 = ₹3{,}84{,}000$.