105. 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.

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9 months ago

105. Given,

Cost of machine =? 15625

depreciation rate = 20 % each year.

We have,

Depreciated value after 1st year =? 15625 - 20 % of 15625

=?  1562520100* ?15625

=?  15625 (120100)

=?  15625* (115)

=?  15625*45

Similarly,

Depreciated value after 2nd year =? 15625 * (45)2 and so on.

This, Depreciated value at end of 5 years

=? 15625 * (45)5

=? 15625 *10243125

=? 5120

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