Depreciation applicable to an equipment is 20% . The value of the equipment 3 years from now will be less by :
Let the present value be Rs. 100.
Value after 3 years = Rs. `[100 xx (1 - 20/100)^3] = Rs.(100 xx 4/5 xx 4/5 xx 4/5)` = Rs. 51.20.
`:.` Reduction in value = 100 - 51.20 = 48.8 %.
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