ECONOMICS (CBSE/UGC NET)

ECONOMICS

INFLATION

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A car valued at $25000 depreciates at a rate of 21% per year for 5 years. By how much did it depreciate? [1 pt]
A
$7692.64
B
$5250
C
$17307.36
D
$19750
Explanation: 

Detailed explanation-1: -value after year =25, 000−5% of 25, 000 =Rs23750.

Detailed explanation-2: -So, if the asset is expected to last for five years, the sum of the years’ digits would be calculated by adding 5 + 4 + 3 + 2 + 1 to get the total of 15. Each digit is then divided by this sum to determine the percentage by which the asset should be depreciated each year, starting with the highest number in year 1.

Detailed explanation-3: -What’s the formula for depreciation? To estimate how much value your car has lost, simply subtract the car’s current fair market value from its purchase price, minus any sales tax or fees.

Detailed explanation-4: -Suppose its present esteem is Rs 387000, the esteem 1 year prior is-Let us assume the estimation of the machine multi year ago=x. It’s 10% will be x*10%=x/10 If we investigate the inquiry we can state that X-X/10=387000 9X=3870000 X=3870000/9 Therefore X= Rs. 430000.

There is 1 question to complete.