Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Financial Mathematics

Question:

A machine has a scrap value of Rs 22500 after 15 years of its purchase. If the annual depreciation charge is Rs 8500, find its original cost using linear method.

Options:

₹170000

₹150000

₹140000

₹160000

Correct Answer:

₹150000

Explanation:

The correct answer is option (2) : ₹150000

$8500=\frac{O.V-22500}{15}$

$O.V-22500=1275500$

$O.V=₹150000$