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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

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 Correct Answer Annuity charging method

The annuity charging method of depreciation is a process used to calculate depreciation on an asset by calculating its rate of return as if it was an investment.
This method requires the determination of the internal rate of return (IRR) on the cash inflows and outflows of the asset.

Related Questions

__________ method of depreciation calculation ensures that the interest is charged on the cost of machine asset every year on the book value, but the rate of depreciation remains constant every year.
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Cost of Asset = Rs. 21,000
Scrap value = Rs. 1,000
Depreciation rate = 10% p.a.
What will be the depreciation for the second year if depreciation is charged by straight line method?
A machine depreciates in value each year at the rate of 10% of its previous value. However, every second year there is some maintenance work so that in that particular year, depreciation is only 5% of its previous value. If at the end of the fourth year, the value of the machine stands at Rs 1,46,205, then find the value of machine at the start of the first year.
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