Q. 174.2( 28 Votes )

# 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 :

Let the value of machine last year = Z

∴ Present value = (100 – 20) % of Z

⇒ 160000 = 80% of Z

⇒ 160000 = Z × 80/100

⇒ Z = 160000 × 100/80

⇒ Z = 2000 × 100

⇒ Z = 200000

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