A vehicle costing Rs 900000 has a scrap value of Rs 270000. If annual depreciation charge is Rs 70000, find its useful life in years.
Answer & explanation
Correct answer: option 4
The correct answer is option (4) : 9 years
$70000=\frac{900000-270000}{n}$
$=n=\frac{630000}{70000}$
$= 9 \, years $