Question

The value of a property is increasing at the rate of 25%
every year. By what percent will the value of property
increase after 3 years?

Answer 1

Answer:

Hope this will help

Step-by-step explanation:

It is given that

Original price of the property (P) = 100

Rate of increase (r) = 25% p.a.

Period (n) = 3 years

We know that

Increased value after 3 years = P(1+r/100)

n

Substituting the values

=100(1+25/100)

3

By further calculation

=100×5/4×5/4×5/4

= 3125/16

Here

Increased value = 3125/16 - 100

Taking LCM

=(3125−1600)/16

=1525/16

So the percent increase after 3 years = 1525/16=955/16%