Advertisements
Advertisements
Question
A manufacturing company is allowed to charge a 10% depreciation on its stock. The initial value of the stock was Rs.60,000/-. After how many years the value of the stock will be 39366?
Advertisements
Solution
Given, rate of depreciation = r = 10%
Initial value of stock = V = ₹ 60,000
The depreciated value of stock = D.V.
= ₹ 39,366/-
By using,
D.V. = V`(1 - "r"/100)^"n"`
`39,366 = 60,000(1 - 10/100)^"n"`
`(1 - 1/10)^"n" = (39,366)/(60,000)`
`(9/10)^"n" = "6,561"/"10,000" = (9/10)^4`
∴ n = 4
∴ The value of the stock will be ₹ 39,366/- after 4 years.
APPEARS IN
RELATED QUESTIONS
The value of a machine depreciates from Rs.32768 to Rs.21,952/- in three years. What is the rate of depreciation?
The value of a machine depreciates at a rate of 10% every year. It was purchased 3 years ago. Its present value is Rs.2,18,700/-. What was the purchase price of the machine?
Mr. Manish purchased a motorcycle at Rs.70,000/-. After some years he sold his motorcycle at the exact depreciated value of it that is Rs.51,030/-. The rate of depreciation was taken as 10%. Find after how many years he sold his motorcycle.
Mr. Chetan purchased furniture for her home at Rs.5,12,000/-. Considering the rate of depreciation as 12.5%, what will be the value of furniture after 3 years.
Grace Fashion Boutique purchased a sewing machine at Rs.25,000/-. After 3 years machine was sold at a depreciated value Rs.18,225/- Find the rate of depreciation.
A tree increases annually by 1/8 of its height. By how much will it increase after 2½ years. If its length today is 8 m.?
What is ‘Depreciation’?
What is depreciation in accounting?
Which of the following assets is NOT usually depreciated?
Which term refers to a sudden reduction in asset value due to fire, flood, or accident?
Why is charging depreciation important for true profit calculation?
What causes 'obsolescence' in depreciation?
What is one key condition for charging depreciation?
Which point is correct regarding reserves?
