Question

26. The price of a commodity increased by 5% from 2004 to 2005, 8% from 2005 to 2006
and 77% from 2006 to 2007. Calculate the average increase from 2004 to 2007
​

Answer 1

The average increase from 2004 to 2007 is 33.57%

Step-by-step explanation:

Let in the year 2004, Rs. x was the price.

Now, the price had increased by 5% from the year 2004 to 2005.

Therefore, the price of the commodity in 2005 was Rs. $x(1 + \frac{5}{100}) = 1.05x$

Now, the price had increased by 8% from 2005 to 2006.

Therefore, the price of the commodity in 2006 was Rs. $1.05x(1 + \frac{8}{100}) = 1.05 \times 1.08 x = 1.134x$

Again, the price had increased by 77% from the year 2006 to 2007.

Therefore, the price of the commodity in 2007 was Rs. $1.134x(1 + \frac{77}{100}) = 2.007x$

Therefore, the average increase in the price of the commodity from 2004 to 2007 will be $\frac{2.007x - x}{3\times x} \times 100 = 33.57$ percent. (Answer)

Answer 2

Answer:

33.57% answer............