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UPSC Civil Service Exam Questions

Q1: A machine costs Rs. 16, 000. By constant rate of declining balance method of depreciation, its salvage value after an expected life of 3 years is Rs. 2, 000. The rate of depreciation is

A 0.25

B 0.30

C 0.40

D 0.50

ANS:D - 0.50

According to decline balance method,
rate of depreciation P=1-(s/c)^1/n.
P = 1-(2000/16000)^1/3,
P = 1-(1/8)^1/3,
P = 1-1/2,
P = 0.5.



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