Statistics & Applications

Financial Math

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applied

A machine costing ₹ 1,00,000 has a useful life of 5 years. The estimated scrap value is ₹ 20,000. Using straight line method the annual depreciation is

₹ 12,000

₹ 16,000

₹ 20,000

₹ 10,000

✅ Correct Option: 2

The machine costs ₹1,00,000 and has a useful life of 5 years with a scrap value of ₹20,000.

Using the straight line method, the machine loses the same amount of value each year.

The total depreciation over the useful life is:

Total Depreciation $= \text{Original Cost} - \text{Scrap Value}$

Total Depreciation $= 1,00,000 - 20,000$

Total Depreciation $= 80,000$

The annual depreciation is the total depreciation divided by the useful life:

Annual Depreciation $= \dfrac{\text{Total Depreciation}}{\text{Useful Life}}$

Annual Depreciation $= \dfrac{80,000}{5}$

Annual Depreciation $= 16,000$

Therefore, the annual depreciation is ₹16,000.

2025: 2 June Shift 1

The effective rate per annum equivalent to a nominal rate of 8% compounded semi-annually is

2026: 25 May Shift 1

The supply function for a commodity is $p = 3\sqrt{16+x}$ . If 9 units of goods are sold, then producer's surplus is :

2026: 12 May Shift 2

Identify the formula used for List I from List II

Match List-I with List-II

List-I	List-II
(A) Present value of perpetuity payable at the end of each payment period	(I) $R+\dfrac{R}{i}$ (₹R payable at the beginning of each payment period, $i$ = interest per rupee per payment period)
(B) Present value of perpetuity payable at the beginning of each payment period	(II) $\left(\dfrac{V_n}{V_0}\right)^{1/n}-1$ , $V_n$ = Final value of investment, $V_0$ = Beginning value of the investment, $n$ = number of years
(C) Computation of CAGR	(III) $\dfrac{C-s}{n}$ , $C$ = Original cost, $s$ = Scrap value, $n$ = number of years
(D) Annual Depreciation	(IV) $\dfrac{R}{i}$ (₹R payable at the end of each period, $i$ = interest per rupee per payment period)

Choose the correct answer from the options given below:

2026: 21 May Shift 2

Taniya purchased a car costing ₹21,00,000 which has a useful life of 15 years. The estimated scrap value of the car is ₹3,00,000. The annual depreciation using straight line method is:

2026: 21 May Shift 1

A person invested ₹5,00,000 in a fund. At the end of the year, the value of the fund is ₹6,50,000. The nominal rate of return, if the market price is the same at the end of the year is:

2026: 12 May Shift 2

Mr. Bean purchased a laptop for ₹75,000. The Laptop is estimated to have a scrap value of ₹10,000 after a span of 8 years. The book value of the laptop at the end of 5 years is

A machine costing ₹ 1,00,000 has a useful life of 5 years. The estimated scrap value is ₹ 20,000. Using straight line method the annual depreciation is

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