Question

A machine every year depreciates 20% on its value.After three years if its cost was Rs.51,200, then what is its cost of the machine
in the first year?​

Answer 1

Answer:

Cost of machine in the 1st year = Rs. 100000

Step-by-step explanation:

It is given that every year cost decrease by 20%

20% decrease = (100-20)/100 = 4/ 5

For 3 years = (4/5) *(4/5) * (4/5)

After 3 years the value is Rs. 51200

Let the cost of the machine in 1st year be X

Now

4/5 * 4/5 * 4/5 *X = 51200

64X / 125 = 51200

X =( 51200 * 125) / 64

X = Rs. 100000