# 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. $\frac{4}{5}$ of the original cost.

$\therefore$ Value at the end of 5 years

$=15625\times \frac{4}{5}\times \frac{4}{5}\times \frac{4}{5}\times \frac{4}{5}\times \frac{4}{5}$

$=5120$

Thus, the value of the machine at the end of 5 years is Rs. 5120

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