Question
A plant was purchased for ₹10,00,000. After 4 years,
its book value stands at ₹6,56,100 using the diminishing balance method. The annual rate of depreciation is:Solution
Let depreciation rate be *r*. Book Value after *n* years = Cost × (1 - r)^n 6,56,100 = 10,00,000 × (1 - r)^4 (1 - r)^4 = 6,56,100 / 10,00,000 = 0.6561 (1 - r) = ⁴√0.6561 = 0.9 (since 0.9^4 = 0.6561) r = 1 - 0.9 = 0.1 or 10%.
More Depreciation Questions
In each group, one word is correctly spelt. Find the correct word.
- In each sentence below four words have been printed in bold which are labeled (a), (b), (c) and (d ) One of these words may be misspelt or inappropriate in...
Find the correct spelling of the word given below.
Select the correctly spelt word.
- In each of the questions below, a sentence is given with four words highlighted in bold in the sentence. Among these bold words one may be wrongly spelt. T...
- Select the correctly spelled sentence.
- Choose the correctly spelled word from the options below:
Choose the correctly spelt word.
- In each of the questions below, a sentence is given with four words highlighted in bold in the sentence. Among these bold words one may be wrongly spelt. T...
In each of the questions below, a sentence is given with four words highlighted in bold in the sentence. Among these bold words, one may be wrongly spe...
