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Ramu purchased a boat for rupees 16000 if the cost of the both is depreciating at the rate of 5% per annum calculate its value after 2 years?
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Ramu purchased a boat for rupees 16000 if the cost of the both is depr...
Understanding Depreciation
Depreciation is the reduction in the value of an asset over time, often due to wear and tear. In this case, Ramu's boat depreciates at a rate of 5% per annum.
Initial Purchase Price
- Ramu purchased the boat for Rupees 16,000.
Calculating Depreciation for 2 Years
To find the value of the boat after 2 years, we need to apply the depreciation formula for each year. The formula for calculating the depreciated value is:
- Value after 1 year = Initial Value × (1 - Depreciation Rate)
Year 1 Calculation
- Depreciation Rate: 5% = 0.05
- Value after 1 year = 16,000 × (1 - 0.05)
- Value after 1 year = 16,000 × 0.95
- Value after 1 year = Rupees 15,200
Year 2 Calculation
Now, we apply the same formula to find the value after the second year:
- Value after 2 years = Value after 1 year × (1 - Depreciation Rate)
- Value after 2 years = 15,200 × 0.95
- Value after 2 years = Rupees 14,440
Final Value of the Boat
After 2 years, the value of Ramu's boat will be Rupees 14,440.
Conclusion
By understanding the concept of depreciation and applying it over time, you can effectively calculate the value of assets like Ramu’s boat. This knowledge is essential for making informed financial decisions.
Depreciation is the reduction in the value of an asset over time, often due to wear and tear. In this case, Ramu's boat depreciates at a rate of 5% per annum.
Initial Purchase Price
- Ramu purchased the boat for Rupees 16,000.
Calculating Depreciation for 2 Years
To find the value of the boat after 2 years, we need to apply the depreciation formula for each year. The formula for calculating the depreciated value is:
- Value after 1 year = Initial Value × (1 - Depreciation Rate)
Year 1 Calculation
- Depreciation Rate: 5% = 0.05
- Value after 1 year = 16,000 × (1 - 0.05)
- Value after 1 year = 16,000 × 0.95
- Value after 1 year = Rupees 15,200
Year 2 Calculation
Now, we apply the same formula to find the value after the second year:
- Value after 2 years = Value after 1 year × (1 - Depreciation Rate)
- Value after 2 years = 15,200 × 0.95
- Value after 2 years = Rupees 14,440
Final Value of the Boat
After 2 years, the value of Ramu's boat will be Rupees 14,440.
Conclusion
By understanding the concept of depreciation and applying it over time, you can effectively calculate the value of assets like Ramu’s boat. This knowledge is essential for making informed financial decisions.
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Ramu purchased a boat for rupees 16000 if the cost of the both is depr...
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Ramu purchased a boat for rupees 16000 if the cost of the both is depreciating at the rate of 5% per annum calculate its value after 2 years?
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Ramu purchased a boat for rupees 16000 if the cost of the both is depreciating at the rate of 5% per annum calculate its value after 2 years? for Class 8 2024 is part of Class 8 preparation. The Question and answers have been prepared according to the Class 8 exam syllabus. Information about Ramu purchased a boat for rupees 16000 if the cost of the both is depreciating at the rate of 5% per annum calculate its value after 2 years? covers all topics & solutions for Class 8 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ramu purchased a boat for rupees 16000 if the cost of the both is depreciating at the rate of 5% per annum calculate its value after 2 years?.
Ramu purchased a boat for rupees 16000 if the cost of the both is depreciating at the rate of 5% per annum calculate its value after 2 years? for Class 8 2024 is part of Class 8 preparation. The Question and answers have been prepared according to the Class 8 exam syllabus. Information about Ramu purchased a boat for rupees 16000 if the cost of the both is depreciating at the rate of 5% per annum calculate its value after 2 years? covers all topics & solutions for Class 8 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ramu purchased a boat for rupees 16000 if the cost of the both is depreciating at the rate of 5% per annum calculate its value after 2 years?.
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