A machine costing ₹2,00,000 is depreciated by ₹18,000 a year by the linear method. What is the rate of depreciation, as a percentage of cost?

Explanation

1. 01

   Rate of depreciation = yearly depreciation ÷ cost, as a percentage.

2. 02

   $\frac{18{,}000}{2{,}00{,}000} \times 100 = 9\%$.