Which of the following depreciation system ensures that the interest be charged on the cost of machine asset every year on the book value, but the rate of depreciation every year remains constant________?
Adiminishing balance method
Bannuity charging method
Cstraight line method
DA-B-C charging method
Esinking fund method
Correct answer
B. annuity charging method
Explanation
The correct answer is annuity charging method.