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.

Explanation

To find the estimated value of the machine at the end of 5 years, we can use the formula for depreciation. The value of the machine decreases by 20% each year, which means it retains 80% of its value each year.

### Step-by-Step Solution:

1. **Initial Value**: The initial cost of the machine is Rs. 15,625.

2. **Depreciation Rate**: The machine depreciates by 20% each year. Therefore, it retains 80% of its value each year. This can be expressed as:
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