Statistics & Applications

Financial Math

Medium

applied

The annual depreciation of a car is ₹ 40,000. If the scrap value of the car after 15 years is ₹ 50,000, then the original cost of the car using linear method is

₹ 5,75,000

₹ 6,25,000

₹ 5,50, 000

₹ 6,50, 000

✅ Correct Option: 4

The annual depreciation of the car is ₹40,000, and after 15 years, the scrap value is ₹50,000.

Total depreciation over 15 years:

Total Depreciation $= 40,000 \times 15$

Total Depreciation $= 6,00,000$

Using the linear depreciation formula:

Original Cost $=$ Total Depreciation $+$ Scrap Value

Original Cost $= 6,00,000 + 50,000$

Original Cost $= 6,50,000$

Therefore, the original cost of the car is ₹6,50,000.

2026: 31 May Shift 2

In 2001, a vehicle was purchased for ₹ 2 Lakh. In 2011, the scrap value of the vehicle became ₹ 50,000. What was the annual depreciation?

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:

2025: 13 May Shift 1

Which of the following is correct about the Sinking Fund?

2026: 15 May Shift 1

Which of the following statements are correct about the compound annual growth rate (CAGR) ?

A. CAGR is a compounded annual return of an investment.

B. CAGR is calculated by using the final and beginning value of an investment.

C. CAGR can be used to calculate and communicate the average growth of a single investment.

D. CAGR can be used to demonstrate and compare the performance of investment advisors.

Choose the correct answer from the options given below:

2026: 26 May Shift 2

Chintan has borrowed ₹ 5,00,000 from a bank to purchase a car and decided to repay the loan in equal monthly installments in 10 years. If bank charges interest at 6% per annum compounded monthly, the EMI on reducing balance method will be : (Given $(1.005)^{120} = 1.82$ )

2025: 30 May Shift 2

Ram wishes to purchase a house for ₹ 15,00,000 and made a down payment of ₹ 5,00,000. If he can amortize the balance at 9% per annum compounded monthly for 25 years, then his EMI is:

[Given $(1.0075)^{300} ≈ 9.41$ ]

The annual depreciation of a car is ₹ 40,000. If the scrap value of the car after 15 years is ₹ 50,000, then the original cost of the car using linear method is

Solution

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