Question

. A motorcycle was bought for Rs 50,000. Its value depreciated at the rate of 8% per

annum. Find the motorcycle’s value after one year.​

Answer 1

Given :

• Cost of motorcycle = Rs. 50000
• Depreciation Rate = 8%

To Find :

• Cost of motorcycle after one year

Formula Applied :

$\underline{\boxed{\sf Depreciation = \frac{Cost\:of\:asset\times Rate\:Of\:Depreciation }{100}}}$

Solution :

As by diminishing value method,

$\sf{Depreciation=\frac{Cost\:of:asset\times Rate\:Of\:Depreciation }{100}}$

$\sf{Depreciation=\dfrac{500{\cancel{0}}{\cancel{0}}\times 8 }{1{\cancel{0}}{\cancel{0}}}}$

$\sf{Depreciation=500 \times 8 }$

$\sf{Depreciation= 4000}$

Cost of motorcycle after one year = Cost of motorcycle - Depreciation Amount

$\implies \sf 50,000-4,000$

$\implies \sf 46,000$

Required Answer :

Cost of the motorcycle after one year is $\underline{\sf Rs. 46,000}$