A mobile phone loses 25% of its value every year. After 2 years it is worth ₹22,500. What was it worth when new?

Explanation

1. 01

   After 2 years the value is $0.75 \times 0.75 = 0.5625$ of the original.

2. 02

   Original = $\frac{22500}{0.5625} = ₹40{,}000$.