Question
Mathematics Question on Applications of Compound Interest Formula
A vehicle whose cost is ₹7,00,000 will depreciate to scrap value of ₹1,50,000 in 5 years. Using linear method of depreciation, the book value of the vehicle at the end of the third year is :
A
₹1,10,000
B
₹3,70,000
C
₹2,70,000
D
₹2,50,000
Answer
₹3,70,000
Explanation
Solution
The correct option is (B) :₹3,70,000.