An equipment costs Rs. 25000 to purchase now. It will be used continuously for 8 years. At the end, its salvage value is estimated to be Rs. 1600. Its residual book value at the beginning of the 6th year of its use, by the straight Iine method of depreciation is
1
Rs. 6250
2
Rs. 9375
3
Rs. 10375
4
Rs. 7450