Question

a computer is purchased for rs 50000 .it is estimated to depreciate at the rate of 10%per annum every year.find its scrap value at the end of 12 years​

Answer 1

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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