Practice Questions
Concept Explanation
Depreciation reduces the value of an asset each year at a fixed rate. It follows the compound interest formula with a decrease.
Key Formula
Value after T years = P(1 − R/100)^T
Example
A machine worth Rs. 50,000 depreciates at 10% p.a. After 2 years: 50000 × 0.9^2 = Rs. 40,500.
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Q1 Easy
A machine of Rs. 50,000 depreciates at 10% p.a. Value after 2 years is:
ExplanationValue = 50000 × (0.9)^2 = Rs. 40,500. -
Q2 Medium
Rs. 80,000 asset depreciates at 20% p.a. Value after 2 years is:
ExplanationValue = 80000 × (0.8)^2 = Rs. 51,200. -
Q3 Easy
Rs. 1,00,000 depreciates at 10% p.a. Value after 1 year is:
ExplanationValue = 100000 × 0.9 = Rs. 90,000. -
Q4 Medium
Rs. 40,000 depreciates at 5% p.a. Value after 2 years is:
ExplanationValue = 40000 × (0.95)^2 = Rs. 36,100. -
Q5 Easy
Rs. 60,000 depreciates at 20% p.a. Value after 1 year is:
ExplanationValue = 60000 × 0.8 = Rs. 48,000. -
Q6 Hard
Rs. 2,00,000 depreciates at 10% p.a. Value after 3 years is:
ExplanationValue = 200000 × (0.9)^3 = Rs. 1,45,800. -
Q7 Medium
Rs. 1,50,000 depreciates at 20% p.a. Value after 2 years is:
ExplanationValue = 150000 × (0.8)^2 = Rs. 96,000.
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Q8 Easy
Rs. 10,000 depreciates at 10% p.a. Value after 2 years is:
ExplanationValue = 10000 × (0.9)^2 = Rs. 8,100. -
Q9 Medium
Rs. 25,000 depreciates at 20% p.a. Value after 2 years is:
ExplanationValue = 25000 × (0.8)^2 = Rs. 16,000. -
Q10 Hard
A car worth Rs. 5,00,000 depreciates at 15% p.a. Value after 2 years is:
ExplanationValue = 500000 × (0.85)^2 = Rs. 361,250. -
Q11 Medium
Rs. 1,20,000 depreciates at 10% p.a. Value after 2 years is:
ExplanationValue = 120000 × (0.9)^2 = Rs. 97,200. -
Q12 Hard
Rs. 80,000 depreciates at 10% p.a. Value after 3 years is:
ExplanationValue = 80000 × (0.9)^3 = Rs. 58,320. -
Q13 Medium
Rs. 90,000 depreciates at 5% p.a. Value after 2 years is:
ExplanationValue = 90000 × (0.95)^2 = Rs. 81,225. -
Q14 Hard
Rs. 64,000 depreciates at 25% p.a. Value after 2 years is:
ExplanationValue = 64000 × (0.75)^2 = Rs. 36,000.
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DS1 Easy
What is the value after depreciation?
Statement IInitial value is Rs. 50,000 depreciating at 10% for 2 years.
Statement IIDepreciation rate is 10% p.a.
ExplanationStatement I alone gives value = Rs. 40,500. -
DS2 Medium
What is the value after 2 years?
Statement IInitial value is Rs. 80,000.
Statement IIDepreciation rate is 20% p.a. for 2 years.
ExplanationNeed initial value, rate and time together. Value = Rs. 51,200.
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DS3 Easy
What is the value after 1 year?
Statement IInitial value is Rs. 1,00,000.
Statement IIDepreciation is 10% per annum.
ExplanationTogether: value = Rs. 90,000. -
DS4 Medium
Is the value less than Rs. 50,000 after 2 years?
Statement IInitial value is Rs. 60,000 at 20% depreciation.
Statement IITime is 2 years.
ExplanationStatement I: value after 2 years = Rs. 38,400, which is less than Rs. 50,000.