A manufacturer reckons that the value of a machine, which costs him Rs 15625, will depreciate each year by 20%. Find the estimated value at the end of 5 years.

Asked by Pragya Singh | 1 year ago |  110

##### Solution :-

Given, the cost of machine = Rs 15625

Also, given that the machine depreciates by 20% every year.

Hence, its value after every year is 80% of the original cost i.e., $$\dfrac{4}{5}$$ of the original cost.

$$15625\times \dfrac{4}{5}\times \dfrac{4}{5}\times.......\times \dfrac{4}{5}$$

Therefore, the value at the end of 5 years =

= 5 × 1024 = 5120

Thus, the value of the machine at the end of 5 years will be Rs 5120.

Answered by Abhisek | 1 year ago

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