Allied & ICAR Exam Bank • ALLIED_0235 NAT • 2 Marks

Section 2: Farm Machinery

Farm Machinery

Subtopic: Cost analysis of implements and tractors

Question Statement:

A farm tractor works 1000 hours per year. Purchase price is ₹6,00,000 and salvage value is $10\%$. Useful life is 10 years. Annual interest rate on average investment is $10\%$. Annual interest charge in ₹ is:

Answer Key:

33000

Step-by-Step Solution & Explanation

Salvage $S = 60,000$. Average investment $= (C + S)/2 = (600000 + 60000)/2 = 330,000$. Annual interest $= 0.10 \times 330000 = ₹33,000$.
← Previous (ALLIED_0234) Next (ALLIED_0236) →

Practice In Authentic CBT Exam Interface

Test your skills under authentic timed conditions with live scoring and AIR percentile ranking.

Launch CBT Mock Test