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Mathematics

The cost (₹ x) of a machine increases by 20% in the first two years and then decreases by 25% in the next two years. Then the cost of machine becomes :

  1. x×120100×75100x \times \dfrac{120}{100} \times \dfrac{75}{100}

  2. x×(120100)2×75100x \times \Big(\dfrac{120}{100}\Big)^2 \times \dfrac{75}{100}

  3. x×(120100)2×(75100)2x \times \Big(\dfrac{120}{100}\Big)^2 \times \Big(\dfrac{75}{100}\Big)^2

  4. x×(80100)2×(75100)2x \times \Big(\dfrac{80}{100}\Big)^2 \times \Big(\dfrac{75}{100}\Big)^2

Compound Interest

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Answer

According to question :

The cost (₹ x) of a machine increases by 20% in the first two years and then decreases by 25% in the next two years.

x×(1+20100)2×(125100)2x×(120100)2×(75100)2.\Rightarrow x \times \Big(1 + \dfrac{20}{100}\Big)^2 \times \Big(1 - \dfrac{25}{100}\Big)^2 \\[1em] \Rightarrow x \times \Big(\dfrac{120}{100}\Big)^2 \times \Big(\dfrac{75}{100}\Big)^2.

Hence, Option 3 is the correct option.

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