Statistics & Applications

Financial Math

Easy

applied

If the price of a machinery costing ₹ 25000 is expected to have a useful life of 4 years and a scrap value of ₹ 5000. Then the annual depreciation by linear method is:

₹ 10000

₹ 6500

₹ 5000

₹ 4000

✅ Correct Option: 3

The machinery has an initial cost of ₹25,000, a scrap value of ₹5,000, and a useful life of 4 years.

In the linear (straight-line) method, the machinery loses the same amount of value every year.

Total Depreciation = Initial Cost - Scrap Value

Total Depreciation = ₹25,000 - ₹5,000

Total Depreciation = ₹20,000

The total depreciation is distributed equally over the useful life.

Annual Depreciation = Total Depreciation ÷ Number of Years

Annual Depreciation = ₹20,000 ÷ 4

Annual Depreciation = ₹5,000 per year

Therefore, the annual depreciation by linear method is ₹5,000.

2026: 31 May Shift 2

The present value of a perpetuity of ₹ 900 payable at the end of each year, if money is worth 6 % per annum, is:

2025: 16 May Shift 1

If a moneylender charges 'interest' at the rate of 10 rupees per 100 rupees per half year, payable in advance, then the effective rate of interest per annum is

2025: 27 May Shift 1

Mr. Jayesh plans to save amount for higher studies of his daughter, required after 10 years. How much amount should he save at the beginning of each year to accumulate Rs.1,00,000 at the end of 10 years. If rate of interest is 12% compounded annually? [Given $(1.12)^{11} = 3.5$ ]

2025: 13 May Shift 1

Mr. 'X' wishes to purchase a house for ₹ 49,65,000 with a down payment of ₹ 15,00,000 and balance amount in EMI for 25 years. If bank charges 6% per annum compounded monthly. Then the EMI is: [Given that $(1.005)^{300} = 4.4650]$

2026: 22 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Nominal rate of return	(I) $EMI=\frac{Principal+Interest}{Period\ in\ months}$
(B) CAGR	(II) $\frac{Original\ value\ of\ the\ asset-Salvage\ value\ of\ the\ asset}{Useful\ life\ of\ the\ asset}$
(C) Flat rate method	(III) $\frac{Current\ market\ value\ of\ investment-Original\ investment\ value}{Original\ investment\ value}\times100$
(D) Annual depreciation	(IV) $\left(\frac{Investment\ at\ the\ end\ of\ investment\ period}{Investment\ at\ the\ beginning\ of\ the\ period}\right)^{\frac{1}{investment\ period}}-1$

Choose the correct answer from the options given below:

2026: 22 May Shift 1

Which of the given statements are true?

(A) Coupon rate is the annual interest rate paid by the bond issuer to the bond holder.

(B) Bonds can only be issued by government entities.

(D) If discount rate = coupon rate for a bond, then present value of the bond= face value of the bond

Choose the correct answer from the options given below:

If the price of a machinery costing ₹ 25000 is expected to have a useful life of 4 years and a scrap value of ₹ 5000. Then the annual depreciation by linear method is:

Solution

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