Question

Solve question 6 with steps

Answer 1

Given the Production of Motor Bikes in a Particular year : 40000

Let the Rate of Growth per Annum be R%

After one year the Production of Bikes : 40000 + 40000 × R%

⇒ After one year the Production of Bikes : 40000(1 + R%)

After two years the production of Bikes : 40000(1 + R%)²

Given : In two years, this Production rose to 48400

⇒ 40000(1 + R%)² = 48400

⇒ (1 + R%)² = 48400/40000

⇒ 1 + R% = 22/20

⇒ R% = 22/20 - 1

⇒ R% = 2/20

⇒ R% = 1/10

⇒ R/100 = 1/10

⇒ R = 10

⇒ The Rate of Growth per Annum is 10%