A vehicle costs ₹2,40,000 and is depreciated by ₹30,000 a year by the linear method. After how many years is its book value ₹90,000?

Explanation

1. 01

   The value must fall by $2{,}40{,}000 - 90{,}000 = 1{,}50{,}000$.

2. 02

   At ₹30,000 a year that takes $\frac{1{,}50{,}000}{30{,}000} = 5$ years.