A manufacturer reckons that the value of a machine which costs him 156250, will depreciate each year by 20%. Find the estimated value at the end of 5 years.

Question

Philoid · Accepted Answer

To find: The amount after five years

Given: (i) Principal – 156250

(ii) Time – 5 years

(iii) Rate – 20% per annum

Formula used:

Ans) The amount after five years will be Rs.51200