Q17 of 62 Page 121

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?

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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