Question

A computer is purchased for Rs. 50,000. It is estimated to depreciate at 10% per

annum every year. Find its scrap value at the end of 12 years.​

Answer 1

Given:

Cost price of the computer = 50,000

Depreciation = 10%

Time period = 12 years

To Find:

The scrap value of computer

Solution:

Let the scrap value be = x

Depreciation = 10% of 50,000

= 10/ 100 × 50,000

= 5000

Therefore,

Depreciation Amount = Cost of the machine - scrap value / Number of  years

5000 = 50000 - x /12

5000 × 12 = 50,0000

60000 = 50000 - x

x = 60,000 - 50,000

x = 10,000

Answer: The scrap value of computer is Rs. 10,000.

Answer 2

Given : A computer is purchased for Rs. 50,000. It is estimated to depreciate at 10% per  annum every year

To find : scrap value at the end of 12 years.​

Solution:

Initial Value = Rs 50000

Rate of Depreciation =  10 %

Time =  12 years

Value  = Initial value ( 1  -  Rate of Depreciation/100) ^(Time)

=> scrap value at the end of 12 years.​  = 50000 ( 1 - 10/100)¹²

= 50000( 0.9)¹²

= 14,121.5

scrap value at the end of 12 years.​ = 14,121.5

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