The value of an equipment depreciates by 20% each year.

The value of an equipment depreciates by 20% each year. How much less will the value of the equipment be after 3 years ?

If the present worth of the equipment be ₹ 100, then its price after 3 years

= 100 ×			80		³	= ₹ 51.2
			100

∴ Depriciation = 48.8%
Aliter : Using Rule 18,
Let the price of equipment be ₹ 100
Its price after 3 years

= 100		1 -	20		³
			100

= 100 ×			80		³	= ₹ 51.2
			100

Depriciation = 48.8%