Depreciation applicable to an equipment is 20\%. The value of the equipment 3 years from now will be less by
(a)45\%
(b)48.8\%
(c)51.2\%
(d)60\%
Answer
Answer (as printed): B
Explanation
Let the present value be ₹ 100. $$\begin{aligned} \text { Value after 3 years } & =₹\left[100 \times\left(1-\frac{20}{100}\right)^{3}\right] \\ & =₹\left(100 \times \frac{4}{5} \times \frac{4}{5} \times \frac{4}{5}\right)=₹ 51.20 \end{aligned}$$
Explanation as extracted from the printed page; notation may be imperfect.