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.

Answer

N/a

Explanation

`"Cost after 1 year "=15625xx(1-(20)/(100))`
`"Cost after 2 year "=15625xx(1-(20)/(100))^(2)`
`"Cost after 5 year "=15625xx(1-(20)/(100))^(5)=15625xx((4)/(5))^(5)`
`=15625xx(4xx4xx4xx4xx4)/(5xx5xx5xx5xx5)=5120`
`therefore "Cost after 5 years "= Rs 5120`