Question

The cost of a car is 2,50,000. Its value depreciates at 2% per annum in a corrosive climate, what will be the total depreciation after 3 years?

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Answer 1

Answer:

Present cost of machine = Rs.32000 Depreciation percentage every year = 5% So, depreciation at the end of first year = 32000×5/100 = 1600/- Then cost of machine at the end of first year = Rs.32000 - Rs.1600 = Rs.30400/- So, the depreciation amount at the end of second year = 30400×5/100 = 1520/- Therefore, total depreciation at the end of 2 years = Rs.1600 + Rs.1520 = Rs.3120/-

Answer 2

7,50,000 is right answer