Given that,
Mass of bullet m=0.02kg
Initial velocity of bullet v1=500m/s
Mass of block M=10kg
Initial velocity v2=0
Final velocity v′1=100m/s
Now, the final velocity of block when bullet comes out
If block velocity =v′2
mv1+Mv2=mv1+Mv′2
0.02×500=0.02×100+10v′2
v′2=10−210
v′2=0.8m/s
Now, after moving 0.2 m
Change in kinetic energy = work done
0−12×10×(0.8)2=−μ×10×10×0.2
μ=0.16
Hence, the friction coefficient is 0.16