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Explanation
The bike loses 20% of its value. It keeps the remaining 80%. The two percentages add to 100%.
x = original price before losing value
80% of x = 0.80x = current price after losing value
0.80x = 560
x = 560/0.80
x = 700
The bike was worth £700 when brand new.
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Check:
20% of 700 = 0.20*700 = 140 pounds is the amount lost.
700 - 140 = 560 is the current value.
Or,
80% of 700 = 0.80*700 = 560 pounds is the current value.
Whichever method you use to check, it confirms the answer.
