A vehicle costing ₹1,25,000 has scrap value of ₹25,000. If annual depreciation is ₹12,500, then useful life of vehicle is :

8 years 

The correct answer is Option (4) → 8 years

The straight line depreciation is,

$\text{Annual Depreciation} = \frac{\text{Cost of Vehicle-Scrap value}}{\text{Useful life}}$

$⇒12,500=\frac{1,25,000-25,000}{n}$

$⇒n=\frac{1,00,000}{12,500}=8$ years