Statistics & Applications

Financial Math

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applied

A vehicle costing ₹9,00,000 has a scrap value of ₹3,60,000. If the annual depreciation charge is ₹60,000, then the useful life of the vehicle using linear depreciation method is:

7 years

9 years

8 years

6 years

✅ Correct Option: 2

In the linear method, useful life $=\frac{\text{cost}-\text{scrap value}}{\text{annual depreciation}}$ .

So the life is $\frac{900000-360000}{60000}=9$ years.

2026: 26 May Shift 2

Match the LIST-I with LIST-II

	LIST-I		LIST-II
A.	Book value of an asset at a given date	I.	Original value of the asset - scrap value of the asset
B.	Useful life of an asset	II.	The value of a depreciable asset at the end of its useful life.
C.	Total depreciation	III.	An accounting estimate of the number of years an asset is likely to remain in service for the purpose of cost-effective revenue generation.
D.	Residual value	IV.	Original value of the asset - accumulated depreciation at that time

Choose the correct answer from the options given below:

2026: 12 May Shift 2

Rama takes a personal loan for a car worth ₹5,00,000 at an interest rate of 7% per annum to be repaid by equal monthly instalments (EMI) in 5 years. Using flat rate method, EMI will be:-

2025: 15 May Shift 1

At what rate of interest will the present value of a perpetuity of Rs. 1000 payable at the end of every six months be Rs. 20000?

2026: 18 May Shift 1

Ram takes a personal loan of ₹ 5,00,000 at the rate of 12% per annum for 3 years. His EMI using a flat rate method is

2026: 21 May Shift 2

Mr. Bean wishes to purchase a house for ₹90,00,000 with a down payment of ₹10,00,000 and balance in EMI for 25 years on reducing balance payment basis. If bank charges 6% per annum compounded monthly, then his EMI is;

(Use $(1.005)^{300} = 4.4650$ )

2026: 25 May Shift 1

The present value of a sequence of payment of ₹ 1500 made at the end of every 6 months and continuing forever, if money is worth 4% per annum compound semi-annually is

A vehicle costing ₹9,00,000 has a scrap value of ₹3,60,000. If the annual depreciation charge is ₹60,000, then the useful life of the vehicle using linear depreciation method is:

Solution

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