Question

the income of a company increases 20% per annum. if its income is 2664000 Rs. in the year 1999 what was its incom in the year 1997?

Answer 1

Hi ,

According to the problem ,

Company Income in 1999 =

Rs 2664000

Increase percent = g = 20 % per

annum

Let income in the year 1997 = Rs x

Here we use the formula

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x × ( 100 + g )/100 × ( 100 + g )/ 100 =

income in 1999

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Rearranging the formula

x = income in 1999 × [100 × 100] / [ (100 + g ) × ( 100 + g ) ]

Substitute the values

x = 2664000 × ( 100 × 100)/ [ ( 100 +
20 ) × ( 100 + 20 ) ]

x = ( 2664000 × 100 × 100 )/ ( 120 ×
120)

After cancellation

x = Rs 1850000

Therefore ,

Company income in the year 1997 = x

= Rs 1850000

I hope this will usful to you.

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