A motorcycle costs Tk. 2500 when it is brand new. At the end of each year it is worth 4/5 of what it was at the beginning of the year. What is the motorcycle worth when it is 3 years old?
A
Tk. 1,000
B
Tk. 1,200
C
Tk. 1,340
D
Tk. 1280
Correct Answer: Tk. 1280
At the end of first year, the motorcycle is worth = 4/5 of 2500 = 2000 TK At the end of second year, the motorcycle is worth = 4/5 of 2000 = 1600 TK At the end of third year, the motorcycle is worth = 4/5 of 1600 = 1280 TK [Shortcut = 4/5 x 4/5 x 4/5 x 2500]