A vehicle costing $₹$125000 has scrap value of $₹$25000. If annual depreciation charge is $₹$12500, then useful life of the vehicle is

Cost of vehicle = $₹$125000 

Scrap value =$₹$25000. 

Annual depreciation charge = $₹$12500

$$\begin{gathered} \mathrm{Estimated} \mathrm{useful} \mathrm{life}=(\text{ Cost of Asset }-\text{ Scrap value })/\mathrm{Depreciation} \\ \mathrm{Estimated} \mathrm{useful} \mathrm{life}=(125000-25000)/12500 \\ \mathrm{Estimated} \mathrm{useful} \mathrm{life}=8 \mathrm{years} \end{gathered}$$