2082Civil EngineeringMedium
An earth moving equipment costs Rs. 5,00,000/- and has an estimated life of 10 years and a salvage value of Rs. 50,000/-.What uniform annual amount must be set aside at the end of each of the 10 years for replacement if the interest rate is 8% per annum and if the sinking fund factor at 8% per annum interest rate for 10 years is 0.069?
ARs. 50000
BRs. 31050
CRs. 37950
DRs. 34500
Correct answer
B. Rs. 31050
Explanation
The correct answer is Rs. 31050.