A manufacturer reckons that the value of the machine, which cost him Rs. $15625$ , will depreciate each year by $20$ %. Find the estimated value at the end of $5$ years.

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Solution

Cost of machine $= R s .15625$
Machine depreciates by $20$ % every year.
Therefore its value after every year is $80$ % of the original cost i.e. $\frac{4}{5}$ of the original,
Value at the end of five years $= 15625 \times \frac{4}{5} \times \frac{4}{5} \times \frac{4}{5} \times \frac{4}{5} \times \frac{4}{5}$
$= 5 \times 1024 = 5120$
Thus the value of the machine at the end of 5 years is $R s .5120 .$

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A manufacturer reckons that the value of the machine, which cost him Rs. 15625, will depreciate each year by 20%. Find the estimated value at the end of 5 years.

Cost of machine =Rs.15625Machine depreciates by 20% every year.Therefore its value after every year is 80% of the original cost i.e. 45 of the original,Value at the end of five years =15625×45×45×45×45×45 =5×1024=5120Thus the value of the machine at the end of 5 years is Rs.5120.

A manufacturer reckons that the value of the machine, which cost him Rs. $15625$ , will depreciate each year by $20$ %. Find the estimated value at the end of $5$ years.