Question

a car is purchased for 80000. depreciation is calculated at 5 percent per annum for the first 3 years and after that 10 percent per annum for the second 3 years . depreciation being calculated on diminishing value . find the value of the car after a period of 6 years

Answer 1

50002

Car purchased for rupees 80000

And as per given in question depreciation will charge on diminishing value that is WDV.

5%on 1st 3 years so 80000-4000= 76000-3800=72200-3610= 68590

and after 3 year dep. rate charge @10%p.a. so.

68590-6859=61731-6173=55558-5556= 50002

so, the value of car after 6 years is 50002 rs..

Answer 2

hope its help you.....