Assuming that the annual interest compounded is equal to i= 8%=0.08. Given value of n=8, FC= 10,00,000, SV= 1,50,000

Total depreciation after x years = A [(1 + i)^x - 1] / i

where A is the annual depreciation and is given by

A= [ (FC -SV) (i) ] / [ (1 + i)^(n) -1 ] = [850000×0.08]/[1.08? -1]

= Rs. 79,912.54

a)

After 3 years, x=3 => depreciation = 79912.54[1.08³-1]/0.08

= Rs. 2,59,428.07

After 5 years, x=5 => depreciation = 79912.54[1.08?-1]/0.08

= Rs. 4,68,814.98

b)

Book value at the end of x years= FC - Depreciation after x years

So, book value at the end of 2nd year = 1000000 - 79912.54[1.08²-1]/0.08

= Rs. 8,33,781.92

BV at the end of year 6 = 1000000 - 79912.54[1.08?-1]/0.08

=Rs. 4,13,767.28