Shares And Dividends

1. Cost of the bike: ₹120,000
2. Scrap value (residual value): ₹30,000
3. Book value at end of Year 3: ₹90,000

Let's denote the following:

• C = Initial cost of the bike = ₹120,000
• S = Scrap value = ₹30,000
• V₃ = Book value at end of Year 3 = ₹90,000
• D = Annual Depreciation
• n = Useful life of the bike (in years)

Using the straight-line depreciation formula:

The depreciation after 3 years is:

Substitute the values:

Calculate the total depreciation over 3 years:

Solve for annual depreciation:

Now find n using:

Solving for n:

Therefore, the useful life of the bike is 9 years.

• 9 years

• Investment: ₹4650
• Income: ₹300
• Rate of Stock:

• Face Value = ₹1000
• Coupon Rate = 4% of Face Value, i.e., ₹40 per annum
• Present Value = ₹838