Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Financial Mathematics

Question:

A vehicle has a scrap value of ₹6,50,000 after 10 years of its purchase. If the annual depreciation charge is ₹35,000, then the original cost of the vehicle is :

Options:

₹10,00,000

₹11,50,000

₹13,50,000

₹12,00,000

Correct Answer:

₹12,00,000

Explanation:

The correct answer is Option (4) → ₹12,00,000

The original cost of the vehicle,

Original cost = Scrap value + (Annual Depreciation × Years)

$= ₹6,50,000 + (₹35,000 × 10)$

$=₹12,00,000$