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The cost of a generator is Rs.60,000. If its value depreciates at the rate of 5% p.a., then its value after two years will be1. Rs.54,0002. Rs.54,1003. Rs.54,1504. None of the above |
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Answer» Correct Answer - Option 3 : Rs.54,150 Formula used Value of a commodity after 'n' years with depreciation rate 'r'% p.a. is \(Actual\ value \times (1 - {r\over100})^n\) Given Cost of generator = Rs.60,000 Rate of depreciation = 5% p.a. Calculation The Value of the generator after two years will be, \(Actual\ value \times (1 - {r\over100})^n\) \(⇒ 60000 \times (1 - {5\over100})^2\) \(⇒ 60000 \times ({19\over20})^2\) ⇒ Rs. 54150 |
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