A vehicle costing ₹1,25, 000 has a scrap value of ₹25,000. If the annual depreciation charge is ₹12,500 then the useful life (in years ) of the vehicle is :

8

The correct answer is Option (3) → 8

Annual Depreciation = $\frac{Cost\,of\,vehicle-Scrap\,value}{Useful\,life}$

$12,500=\frac{1,25,000-25,000}{Useful\,life}$

Useful life = $\frac{100000}{12500}$

Useful life = 8 years