Question

The value of a machine depreciates every year by $20\%$. If the present value of the machine be $Rs.160000$, what was its value last year?

Answer 1

Given:

The value of a machine depreciates every year $=20\%$

The present value of the machine $=Rs.160000$

Let the value of the machine last year be $x$.

$\Rightarrow x\times (100-20)\%=160000$ [Since,depreciation is $20\%$]

$\Rightarrow x\times 80\%=160000$

$\Rightarrow x\times \frac{80}{100}=160000$

$\Rightarrow x=160000\times \frac{100}{80}$

$\Rightarrow x=2000\times 100$

$\Rightarrow x=200000$

Hence, the value of the machine last year was $Rs.200000$.