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A machine depreciates at 10% of its value at the beginning of a year. The cost & scrap value realized at the time of sale being Rs. 23,240/- & Rs. 9,000/- respectively. For how many years the machine was put to use?
(a) 7 years
(b) 8 years
(c) 9 years
(d) 10 years?
(a) 7 years
(b) 8 years
(c) 9 years
(d) 10 years?
Most Upvoted Answer
A machine depreciates at 10% of its value at the beginning of a year. ...
Understanding Depreciation
Depreciation is the reduction in the value of an asset over time. In this case, the machine depreciates at a rate of 10% per year based on its value at the beginning of each year.
Initial Cost and Scrap Value
- Cost of Machine: Rs. 23,240
- Scrap Value (at the end of its useful life): Rs. 9,000
Calculation of Depreciation
The formula for calculating the value of the machine at the end of each year is:
Value at end of year = Value at beginning of year - (10% of Value at beginning of year)
Using this formula, we can determine how many years the machine was used before its value reduced to the scrap value.
Yearly Depreciation Calculation
1. Year 1:
- Value = 23,240 - (10% of 23,240) = 20,916
2. Year 2:
- Value = 20,916 - (10% of 20,916) = 18,825.40
3. Year 3:
- Value = 18,825.40 - (10% of 18,825.40) = 16,942.86
4. Year 4:
- Value = 16,942.86 - (10% of 16,942.86) = 15,248.57
5. Year 5:
- Value = 15,248.57 - (10% of 15,248.57) = 13,723.71
6. Year 6:
- Value = 13,723.71 - (10% of 13,723.71) = 12,351.34
7. Year 7:
- Value = 12,351.34 - (10% of 12,351.34) = 11,116.21
8. Year 8:
- Value = 11,116.21 - (10% of 11,116.21) = 10,004.59
9. Year 9:
- Value = 10,004.59 - (10% of 10,004.59) = 9,003.93
Conclusion
The machine's value after 9 years is approximately Rs. 9,003.93, which is close to the scrap value of Rs. 9,000.
Hence, the machine was put to use for 9 years.
Correct Answer: (c) 9 years
Depreciation is the reduction in the value of an asset over time. In this case, the machine depreciates at a rate of 10% per year based on its value at the beginning of each year.
Initial Cost and Scrap Value
- Cost of Machine: Rs. 23,240
- Scrap Value (at the end of its useful life): Rs. 9,000
Calculation of Depreciation
The formula for calculating the value of the machine at the end of each year is:
Value at end of year = Value at beginning of year - (10% of Value at beginning of year)
Using this formula, we can determine how many years the machine was used before its value reduced to the scrap value.
Yearly Depreciation Calculation
1. Year 1:
- Value = 23,240 - (10% of 23,240) = 20,916
2. Year 2:
- Value = 20,916 - (10% of 20,916) = 18,825.40
3. Year 3:
- Value = 18,825.40 - (10% of 18,825.40) = 16,942.86
4. Year 4:
- Value = 16,942.86 - (10% of 16,942.86) = 15,248.57
5. Year 5:
- Value = 15,248.57 - (10% of 15,248.57) = 13,723.71
6. Year 6:
- Value = 13,723.71 - (10% of 13,723.71) = 12,351.34
7. Year 7:
- Value = 12,351.34 - (10% of 12,351.34) = 11,116.21
8. Year 8:
- Value = 11,116.21 - (10% of 11,116.21) = 10,004.59
9. Year 9:
- Value = 10,004.59 - (10% of 10,004.59) = 9,003.93
Conclusion
The machine's value after 9 years is approximately Rs. 9,003.93, which is close to the scrap value of Rs. 9,000.
Hence, the machine was put to use for 9 years.
Correct Answer: (c) 9 years
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A machine depreciates at 10% of its value at the beginning of a year. The cost & scrap value realized at the time of sale being Rs. 23,240/- & Rs. 9,000/- respectively. For how many years the machine was put to use?(a) 7 years(b) 8 years(c) 9 years(d) 10 years?
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A machine depreciates at 10% of its value at the beginning of a year. The cost & scrap value realized at the time of sale being Rs. 23,240/- & Rs. 9,000/- respectively. For how many years the machine was put to use?(a) 7 years(b) 8 years(c) 9 years(d) 10 years? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A machine depreciates at 10% of its value at the beginning of a year. The cost & scrap value realized at the time of sale being Rs. 23,240/- & Rs. 9,000/- respectively. For how many years the machine was put to use?(a) 7 years(b) 8 years(c) 9 years(d) 10 years? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A machine depreciates at 10% of its value at the beginning of a year. The cost & scrap value realized at the time of sale being Rs. 23,240/- & Rs. 9,000/- respectively. For how many years the machine was put to use?(a) 7 years(b) 8 years(c) 9 years(d) 10 years?.
A machine depreciates at 10% of its value at the beginning of a year. The cost & scrap value realized at the time of sale being Rs. 23,240/- & Rs. 9,000/- respectively. For how many years the machine was put to use?(a) 7 years(b) 8 years(c) 9 years(d) 10 years? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about A machine depreciates at 10% of its value at the beginning of a year. The cost & scrap value realized at the time of sale being Rs. 23,240/- & Rs. 9,000/- respectively. For how many years the machine was put to use?(a) 7 years(b) 8 years(c) 9 years(d) 10 years? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A machine depreciates at 10% of its value at the beginning of a year. The cost & scrap value realized at the time of sale being Rs. 23,240/- & Rs. 9,000/- respectively. For how many years the machine was put to use?(a) 7 years(b) 8 years(c) 9 years(d) 10 years?.
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