Question

The value of a machine depreciator by 20% every year.if its present value is 2,50,000.what was its value last year?

Answer 1

given
P=2,50,000 , R=20.......(the value depreciate by 20% every year but here asked value of last year so 20 is taken positive)
N=1 year ,
by a formula,

$a = p(1 + \frac{r}{100} ) {}^{n}$
$a = 250000(1 + \frac{20}{100} ) {}^{1}$
$a = 250000 \times \frac{120}{100}$


$a = 2500 \times 120$

$a = 300000$
The value of machine was 3,00,000.
I hope this answer will help you