GATE AG 2017 • Q6 NAT • 2 Marks

Section 3: Farm Power

Farm Power

Subtopic: Thermodynamic principles of I.C. engines

Question Statement:

The purchase price of a tractor is Rs. 5.0 lakh. Considering the constant rate of depreciation as 0.2 in declining balance method, the value of the tractor at the end of 4th year in lakh will be __________.

Official Answer Key:

2.03 to 2.06

Step-by-Step Solution & Explanation

• Declining balance method: Value after n years = P(1–d)^n, where P = purchase price, d = depreciation rate. • Value = 5.0 × (1–0.2)^4 = 5.0 × (0.8)^4 = 5.0 × 0.4096 = 2.048 lakh.

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