CameraIcon

SearchIcon

MyQuestionIcon

200

You visited us 200 times! Enjoying our articles? Unlock Full Access!

Formula for CI

Original Cost...

Question

Original Cost = Rs $1, 00, 000$ . Life = $5$ years. Expected salvage value = Rs $2, 000$ . What will be the rate of depreciation p.a?

A

20.0 %

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

19.8 %

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

19.6 %

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

D

19.4 %

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C $19.6 %$
Depreciation = $\frac{1, 00, 000 - 2, 000}{5} = 19, 600$ ;
Rate of depreciation = $\frac{19, 600 \times 100}{1, 00, 000} = 19.6 %$

Suggest Corrections

thumbs-up

0

Similar questions

Q. Original cost of an asset was Rs.

1, 00, 000

. Life 5 years. Expected salvage value was Rs. 5,000, then rate of depreciation p.a will be _______.

Q. Original Cost = Rs. 1,00,000. Life = 5 years. Expected salvage value = Rs. 2,000
Rate of depreciation p.a.as per straight line method is _______.

Q. Original cost of an asset was Rs.

1, 00, 000

. Life 5 years. Expected salvage value was Rs. 5,000. Hence Depreciation for 3rd year as per straight line method is ___________.

Q. Original cost = Rs. 80,000, Life = 10 Years, Estimated salvage Value = 4,000.
As per SLM method rate of depreciation p.a. = ____________.

Q. Original Cost = Rs. 1,00,000.
Salvage Value = Rs. 5,000.
Calculate Depreciation for 2^nd year @10% p.a under WDV method ?

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Deducing a Formula for Compound Interest concept video

MATHEMATICS

Watch in App

explore_more_icon

Explore more

Standard VIII Mathematics

Join BYJU'S Learning Program

CrossIcon