Mathematics · Financial Mathematics and Amortization
A bank invests Rs. 50,00,000 in software on Jan 1, 2023 (amortized over 5 years, SLM). On Jan 1, 2024, it spends Rs. 10,00,000 to add a module that increases useful life by 2 years from that date. On Jan 1, 2025, due to new RBI regulations, the bank decides the software will be completely replaced on Dec 31, 2025. Calculate: (i) Amortization for 2023, (ii) Book value on Jan 1, 2024 (before module addition), and (iii) Amortization for the year 2025.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1(i) Rs. 10,00,000; (ii) Rs. 40,00,000; (iii) Rs. 50,00,000
- 2(i) Rs. 12,50,000; (ii) Rs. 37,50,000; (iii) Rs. 41,66,667
- 3(i) Rs. 10,00,000; (ii) Rs. 40,00,000; (iii) Rs. 43,33,333
- 4(i) Rs. 10,00,000; (ii) Rs. 40,00,000; (iii) Rs. 41,66,667✓
Correct answer
(i) Rs. 10,00,000; (ii) Rs. 40,00,000; (iii) Rs. 41,66,667
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Mathematics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Financial Mathematics and Amortization MCQs →Want more practice questions on Financial Mathematics and Amortization?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Mathematics · Financial Mathematics and Amortization