The value of a machine depreciates by 20% every year. If the present value of the machine is Rs 4, 40,000, what was its value a year ago?
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Answer:
Depreciation in the value of machine = 20
%
Present value = Rs. 160000 Then value of machine one year ago =
160000
×
100
100
−
20
=
160000
×
100
80
= Rs. 200000
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