Question

What is the rate of depreciation?

Answer 1

Step 1: The formula for depreciation using the straight-line method is: \[ {Depreciation Rate} = \frac{{Cost} - {Scrap Value}}{{Useful Life}}. \] Step 2: Substitute the given values: \[ {Depreciation Rate} = \frac{45200 - 0}{3} = 15066.67 \, {per year}. \]

Answer 2

Step 1: The book value of the asset decreases over time due to depreciation. The linear equation representing the book value \( V(t) \) at the end of \( t \)th year follows the straight-line method formula: \[ V(t) = {Initial Cost} - {Depreciation Rate} \times t. \] Step 2: Substitute the given values: \[ V(t) = 45200 - 15066.67t, \quad {where } 0 \leq t \leq 3. \]

Answer 3

Step 1: Use the linear equation for book value derived earlier: \[ V(t) = 45200 - 15066.67t. \] Step 2: Substitute \( t = 1.5 \) to find the book value after 1.5 years: \[ V(1.5) = 45200 - 15066.67 \times 1.5. \] Step 3: Compute the value: \[ V(1.5) = 45200 - 22600 = 22600. \] Thus, the book value at the end of 1.5 years is ₹ 22,600.