The annual or periodical payment for repayment of the capital amount invested on a property for a specified period is known as:

The annual or periodical payment for repayment of the capital amount invested on a property for a specified period is known as:

Right Answer is:

Annuity

SOLUTION

Annuity:- The annual payment for repayment of the capital amount invested on a property for a specified period is called an annuity.

Depletion: Depletion is used in respect of the extraction of natural resources like quarries, mines, etc., that reduce the availability of the quantity of the material or asset.

Obsolescence: Obsolescence refers to a decrease in usefulness caused by the account of the asset becoming out of date, old-fashioned, etc. The fact remains that obsolescence is regarded as one of the causes of depreciation.

Amortization: It refers to writing off the proportionate value of the intangibles such as goodwill, copyright, patents, etc.

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