Question

The value of a machine depreciates 20% every year if its present value in Rs 85,200 what was its value a year ago?

Answer 1

present value is 85200 we have to find value a year ago

for eg if dep is 20%

value year ago is 100

so today's value will be 80, a year ago value will be 80/.8

so assuming 80 is equal to 85200 then value ago will be 85200/.8 will give 106500