Question

A piece of equipment cost a certain factory
1000000. If it depreciates in value, 2% every
year then its value at the end of 10 years, all
percentages apply
(1) 18,20,000
percentages applying to the original cost, is
nited
(2) 80,00,000
(3) 378,80,000
(4) 70,20,000​

Answer 1

Correct option is

B

Rs 1,05,000

Let the cost of an equipment is Rs. 100.

Now the percentages of depreciation at the end of 1st,2nd,3rd years are 15,13.5,12, which are in A.P., with a=15 and d=−1.5.

Hence, percentage of depreciation in the tenth year =a+(10−1)d=15+9(−1.5)=1.5

Also total value depreciated in 10 years=15+13.5+12+...+1.5=82.5

Hence, the value of equipment at the end of 10 years=100−82.5=17.5.

The total cost being Rs. 6,00,000/100×17.5=Rs.1,05,000.

Answer 2

Answer:

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