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# The value of a certain office machine de- preciates in such a way tha

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Math Expert
Joined: 02 Sep 2009
Posts: 58445
The value of a certain office machine de- preciates in such a way tha  [#permalink]

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15 Feb 2018, 23:46
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Difficulty:

5% (low)

Question Stats:

92% (01:22) correct 8% (02:23) wrong based on 48 sessions

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The value of a certain office machine depreciates in such a way that its value at the end of each year is 4/5 of its value at the beginning of the same year. If the initial value of the machine is $5,000, what is its value at the end of 3 years? (A)$4,750.25

(B) $4,000.00 (C)$2,560.00

(D) $2,000.00 (E)$640.00

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Senior Manager
Joined: 07 Jul 2012
Posts: 367
Location: India
Concentration: Finance, Accounting
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Re: The value of a certain office machine de- preciates in such a way tha  [#permalink]

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16 Feb 2018, 00:21
1
Initial Value= $5000 At the end of 1st year: $$\frac{4}{5}$$*5000=$4000

At the end of 2nd year: 4000*$$\frac{4}{5}$$= $3200 At the end of 3rd year: 3200*$$\frac{4}{5}$$=$2560

OR

5000*$$\frac{4}{5}$$*$$\frac{4}{5}$$*$$\frac{4}{5}$$= $2560 Answer: C. _________________ Kindly hit kudos if my post helps! Current Student Joined: 07 Jan 2016 Posts: 1086 Location: India GMAT 1: 710 Q49 V36 Re: The value of a certain office machine de- preciates in such a way tha [#permalink] ### Show Tags 16 Feb 2018, 00:25 Bunuel wrote: The value of a certain office machine depreciates in such a way that its value at the end of each year is 4/5 of its value at the beginning of the same year. If the initial value of the machine is$5,000, what is its value at the end of 3 years?

(A) $4,750.25 (B)$4,000.00

(C) $2,560.00 (D)$2,000.00

(E) $640.00 end of 1 year = 4/5 of value end of 3 years = 4/5 ^ 3 of original 5000 x 4/5 x 4/5 x 4/5 40 x 64 2560 (C) imo Intern Joined: 06 Feb 2018 Posts: 2 Re: The value of a certain office machine de- preciates in such a way tha [#permalink] ### Show Tags 19 Feb 2018, 10:10 5000*64/125 = 40*64 = 2560 (c) Target Test Prep Representative Status: Head GMAT Instructor Affiliations: Target Test Prep Joined: 04 Mar 2011 Posts: 2815 Re: The value of a certain office machine de- preciates in such a way tha [#permalink] ### Show Tags 21 Feb 2018, 14:09 Bunuel wrote: The value of a certain office machine depreciates in such a way that its value at the end of each year is 4/5 of its value at the beginning of the same year. If the initial value of the machine is$5,000, what is its value at the end of 3 years?

(A) $4,750.25 (B)$4,000.00

(C) $2,560.00 (D)$2,000.00

(E) \$640.00

After 3 years the value of the machine is:

5,000 x 4/5 x 4/5 x 4/5 = 5 x 10 x 10 x 10 x 4/5 x 4/5 x 4/5 = 40 x 4 x 4 x 4 = 2,560

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Re: The value of a certain office machine de- preciates in such a way tha   [#permalink] 21 Feb 2018, 14:09
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