Statistics & Applications

Financial Math

Easy

applied

The value of a depreciable asset at the end of its useful life is called ____.

Nominal Value

Book value

Marginal value

Scrap value

✅ Correct Option: 4

The value of a depreciable asset at the end of its useful life is called scrap value.

A depreciable asset is any item that loses value over time due to use or age, such as a car, computer, or factory machine. The end of useful life occurs when the asset can no longer be used for its original purpose efficiently.

Scrap value (also called salvage value or residual value) is the final remaining value of an asset after it has been fully depreciated and used up.

For example, a delivery truck purchased for ₹10,00,000 and used for 10 years may be worth only ₹50,000 when sold to a scrap dealer. This ₹50,000 is the scrap value.

Nominal value is the face value or the value stated on an asset, such as the printed value on a share certificate. This is not related to end of life.

Book value is the current value shown in a company's accounting books at any point in time. This keeps changing every year and is not specific to the end of useful life.

Marginal value is the additional value from one more unit. This is an economics term not related to asset depreciation.

Therefore, the answer is Option 4 - Scrap Value.

2026: 25 May Shift 1

Consider an investment of ₹ 15,000 whose annual values are given below:

June 1, 2022	June 1, 2023	June 1, 2024	June 1, 2025
₹ 15,000	₹ 16,500	₹ 19,800	₹ 20,790

then the CAGR % is: (given $(1.386)^{1/3} = 1.115$ )

2025: 3 June Shift 2

A machine costing Rs.2,00,000 has a useful life of 5 years.The estimated scrap value is Rs.20,000. By using straight line method, the annual depreciation is

2025: 29 May Shift 2

Every year the price of a motorcycle depreciates by Rs. 15000. After 12 years its price has become Rs. 50000. Then its original cost was:

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:

2026: 21 May Shift 2

The present value of a perpetuity of ₹5,000 payable at the beginning of each year, if the money is worth 8% effective is

2025: 3 June Shift 1

Ajesh purchased a printer ₹ 15,000. The printer is estimated to have a scrap value of ₹ 3,000 after a span of 6 years. Then the book value of the printer at the end of 3 years will be:-

The value of a depreciable asset at the end of its useful life is called ____.

Solution

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