Question
A manufacturer reckons that the value of machine, which costs him Rs. 15625, will depreciate each year by 20%. Find the estimated value of it at the end of 5 years.
Solution
After the end of one year, value of machine = Rs.
= Rs
After the end of two years, value of machine = Rs.
= Rs. 15625
Thus, the value of machines after successive years are......... which form a G.P. with a = Rs. 15625
∴