Question

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.

Answer 1

Hope this will help you.

Answer 2

Dear Student,

● Answer -

Estimated value of machine = 5120 Rs

● Explanation -

Given that value of machine decreases each year by 20 %.

So estimated value of machine after 5 years is -

Estimated value = Initial value (1 - decrease %)^time

Estimated value = 15625 (1 - 20/100)^5

Estimated value = 15625 (1 - 0.2)^5

Estimated value = 15625 × 0.8^5

Estimated value = 15625 × 0.32768

Estimated value = 5120 Rs

Hence, estimated value of machine is 5120 Rs.

Thanks dear..