Rate of depreciation = 20%
After 1 year value of machine = 15625 - 15625 $ \times \frac { 20 } { 100 }$ = 15625 – 3125 = ₹ 12500
After 2 year value of machine = 12500 - 12500 $ \times \frac { 20 } { 100 }$ = 12500 – 2500 = ₹ 10000
After 3 year value of machine = 10000 - 10000 $ \times \frac { 20 } { 100 }$ = 10000 – 2000 = ₹ 8000
$\therefore$ Sequence of values of machine after depreciation is 12500, 10000, 8000, ... is a G.P.
Here a = 12500, r = $\frac { 10000 } { 12500 } = \frac { 4 } { 5 }$
$\therefore$ a5 = ar4 = 12500 $ \times \left( \frac { 4 } { 5 } \right) ^4$ = 12500 $\times \frac { 256 } { 625 }$ = ₹5120
Therefore, the value of machine at the end of 5 years is ₹ 5120