a computer is purchased for rs 50000 .it is estimated to depreciate at the rate of 10%per annum every year.find its scrap value at the end of 12 years
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Given : A computer is purchased for Rs. 50,000. It is estimated to depreciate at 10% per annum every year
To find : scrap value at the end of 12 years.
Solution:
Initial Value = Rs 50000
Rate of Depreciation = 10 %
Time = 12 years
Value = Initial value ( 1 - Rate of Depreciation/100) ^(Time)
=> scrap value at the end of 12 years. = 50000 ( 1 - 10/100)¹²
= 50000( 0.9)¹²
= 14,121.5
scrap value at the end of 12 years. = 14,121.5
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