Statistics & Applications

Financial Math

Easy

applied

A machine costing Rs 50,000 has a useful life of 4 years.The estimated scrap value is Rs 10,000 . The rate of depreciation per annum is:

20%

30%

25%

15%

✅ Correct Option: 3

Given information:

Initial Cost = Rs 50,000

Useful Life = 4 years

Scrap Value = Rs 10,000

Total Depreciation = Initial Cost - Scrap Value

Total Depreciation = 50,000 - 10,000

Total Depreciation = Rs 40,000

Annual Depreciation = Total Depreciation ÷ Number of Years

Annual Depreciation = 40,000 ÷ 4

Annual Depreciation = Rs 10,000 per year

Rate of Depreciation = $\dfrac{\text{Annual Depreciation}}{\text{Total Depreciation}} \times 100$

Rate = $\dfrac{10,000}{40,000} \times 100$

Rate = $\dfrac{1}{4} \times 100$

Rate = $25\%$

Therefore, the rate of depreciation per annum is 25%.

2025: 21 May Shift 2

Which of the following is not correct about the Compound Annual Growth Rate (CAGR)?

2025: 29 May Shift 2

Mrs Rathna invested Rs 2 lakh in an enterprise for 5 years. Her compound annual growth rate (CAGR) turned out to be 20.5%. The end balance would be: (given $(1.205)^5=2.54)$

2025: 22 May Shift 1

Kavya takes a personal loan of ₹ 10,00,000 at the rate of 12% per annum for 5 years, then the EMI by using flat rate method is

2025: 22 May Shift 2

Rahul invested ₹ 20000 in a mutual fund in year 2018. If the value of mutual fund increased to ₹ 32000 in year 2023. Then the compound annual growth rate of his investment is: $[given \, that(1.6)^{1/5} = 1.098]$

2026: 26 May Shift 2

Let us denotes R=Periodic payment,i=interest per period per rupee ,n=number of payment,P=pricipal payment

Match the terms in List I with their respective formula in List II.

LIST-I	LIST-II
A. The amount in a sinking fund after $n$ period with payment at end	I. $\dfrac{Pi(1+i)^n}{(1+i)^n - 1}$
B. EMI by using flat rate method	II. $P\left(i + \dfrac{1}{n}\right)$
C. The amount in a sinking fund after $n$ period with payment at beginning	III. $R\left\{\dfrac{(1+i)^n - 1}{i}\right\}$
D. EMI by using reducing balance payment rate method	IV. $R(1+i)\left[\dfrac{(1+i)^n - 1}{i}\right]$

Choose the correct answer from the options given below:

2025: 2 June Shift 1

Maneesh took a loan of ₹ 9,00,800 from bank at an interest rate of 6% per annum for 10 years. If she has to pay the loan back with the help of equal monthly installments (EMI). Then, the EMI using reduced balance method is (approx):

[Given: $(1.005)^{-120}=0.5496$ ]

A machine costing Rs 50,000 has a useful life of 4 years.The estimated scrap value is Rs 10,000 . The rate of depreciation per annum is:

Solution

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