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CUET · MATHS · PYQ PAPER 2025

A motorbike costing Rs. 1, 25, 000 has a scrap value of Rs. 25, 000.
If the annual depreciation charge is Rs. 12, 500, then the useful life of the bike is (by using linear method):

  1. A 7 years
  2. B 8 years
  3. C 9 years
  4. D 10 years
Verified Solution

Answer & Solution

Correct Answer

(B) 8 years

Step-by-step Solution

Detailed explanation

\( \text{Total Depreciation} = \text{Cost} - \text{Scrap Value} = 1,25,000 - 25,000 = 1,00,000 \) \( \text{Useful life} = \frac{\text{Total Depreciation}}{\text{Annual Depreciation}} = \frac{1,00,000}{12,500} = 8 \text{ years} \)