Mathematics for FinancePYQ Nov 19Question 1203 of 512
All Questions

Scrap value of a machine valued at Rs. 10,00,000\displaystyle \text{Rs. }10,00,000, after 10\displaystyle 10 years within depreciation at 10%\displaystyle 10\% p.a.:

Options

ARs. 3,48,678.44\displaystyle \text{Rs. }3,48,678.44
BRs. 3,84,679.45\displaystyle \text{Rs. }3,84,679.45
CRs. 4,00,000\displaystyle \text{Rs. }4,00,000
DRs. 3,00,000\displaystyle \text{Rs. }3,00,000
For any discrepancies in this question, email contact@cadada.in

Correct Answer

✅ Option a — Rs. 3,48,678.44\displaystyle \text{Rs. }3,48,678.44

All Options:

  • ARs. 3,48,678.44\displaystyle \text{Rs. }3,48,678.44
  • BRs. 3,84,679.45\displaystyle \text{Rs. }3,84,679.45
  • CRs. 4,00,000\displaystyle \text{Rs. }4,00,000
  • DRs. 3,00,000\displaystyle \text{Rs. }3,00,000

Detailed Solution & Explanation

**Derivation of Scrap Value** Given: - Initial Value of Machine (V0\displaystyle V_0) = Rs. 10,00,000\displaystyle \text{Rs. }10,00,000 - Rate of Depreciation (d\displaystyle d) = 10%\displaystyle 10\% per annum - Time (t\displaystyle t) = 10\displaystyle 10 years **Step 1: Use the depreciation formula** Vt=V0(1−d)tV_t = V_0(1 - d)^t V10=1000000(1−0.10)10V_{10} = 1000000(1 - 0.10)^{10} V10=1000000(0.9)10V_{10} = 1000000(0.9)^{10} **Step 2: Compute the value** (0.9)10≈0.34867844(0.9)^{10} \approx 0.34867844 V10=1000000×0.34867844=Rs. 3,48,678.44V_{10} = 1000000 \times 0.34867844 = \text{Rs. }3,48,678.44 Hence, **Option A** is the correct answer.

Key Concepts to Understand

More Questions from Mathematics for Finance

Ready to Master Mathematics for Finance?

Practice all 512 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free