Question

Revisit
A shopkeeper was supposed to appreciate the price of a product by 5% every month. Instead of doing appreciation
he depreciated it by 5% every month and sold it for $4,512.5 after two months. What is the total loss that he incurred
with respect to the expected value of selling?​

Answer 1

Given :- A shopkeeper was supposed to appreciate the price of a product by 5% every month. Instead of doing appreciation ,he depreciated it by 5% every month and sold it for $4,512.5 after two months. What is the total loss that he incurred with respect to the expected value of selling ?

Solution :-

we have ,

→ Depreciated Price of Product after 2 months = $4512.5

→ Depreciated rate = 5% every month .

So,

→ Original Price of Product = 4512.5 / {1 - (5/100)}² = 4512.5 / {1 - (1/20)}² = 4512.5 / (19/20)² = 4512.5 * (400/361) = $5000 .

Now,

→ Original Price of Product = $5000

→ appreciation each month = 5%

then,

→ Expected Price of Product after 2 month = 5000 * {1 + (5/100)}² = 5000 * {1 + (1/20)}² = 5000 * (21/20)² = 5000 * (441/400) = $5512.5 .

therefore,

→ Total Loss he occurred = 5512.5 - 4512.5 = $1000 (Ans.)

Hence, The shopkeeper occurred Total loss of $1000 .

Learn more :-

Raju buys 3 goats for rs 11600. when he sells goats for 20 percent profit and sheep at 10 percent loss. he earns total p...

https://brainly.in/question/26745258

An item was sold at a profit of 12% after giving a discount of 12.5% on the list price. what would be the gain or loss p...

https://brainly.in/question/26616270