31. 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.
Cost of machine = Rs. 15625
Machine depreciate each year by 20%.
Therefore, its value every year is 80% of the original cost i.e. of the original cost.
Value at the end of 5 years
Thus, the value of the machine at the end of 5 years is Rs. 5120
Create Your Account