MENU
Question -

A piece of equipment cost a certain factory ₹ 600,000. If it depreciates in value, 15% the first, 13.5% the next year, 12% the third year, and so on. What will be its value at the end of 10 years, all percentages applying to the original cost ?



Answer -

Cost of a piece of equipment = ₹ 600,000
Rate of depreciation for the first year = 15%
for the second year = 13.5%
for the third year = 12.0% and so on
The depreciation is in A.P.
whose first term (a) = 15
and common difference (d) = 13.5 – 15.0 = -1.5
Period (n) = 10

Comment(S)

Show all Coment

Leave a Comment

Free - Previous Years Question Papers
Any questions? Ask us!
×