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An electric bike costs ₹42,000 and has a useful life of 10 years. If annual depriciation is ₹3,000, then the scrap value by using linear method of depriciation is:

Solution

✅ Correct Option: 3

Linear depreciation gives cost−scraplife=3000\frac{\text{cost}-\text{scrap}}{\text{life}}=3000, so 42000−S=3000×10=3000042000-S=3000\times10=30000, giving S=12000S=12000.

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