Question

the value of an article decreased for two years at the rate of 10% per year and then in the third year it is increased by 10%. find the original value of the article, if it's valid at the end of 3 years is rupees 40,095

Answer 1

Let , Original value of article =  P

And we know formula when price decreased :

Amount =  P(1 − r/100)^t

Here , r  = 10  and t  = 2 ( In years )  , So

Value of the article after 2 years  =  P(1 − 10/100)^2

=P(1 − 1/10)^2=P(9/10)^2

=P(81/100) = 81P/100

Also given : In third year value is increased by 10 %  , So

Value of article after three years  =[ 81 P/100]+10% of [81 P/100 ]

= [81 P/100]+[10/100*81P/100]

=81P/100 + 81P/1000

= [810P+81P]/100

= 891 P/1000

Also given value of article after three years  =  Rs . 40095  , So