Question

The price of a computer increases by 10% in the first year, decreases by 5% in the second year, and increases by 8% in the third year. If the original price was ₹50,000, then the final price (in ₹) is:

• A. 56430
• B. 55100
• C. 54120
• D. 55830

Answer 1

Answer:

A. 56430

To find the final price of the computer, calculate the successive percentage changes on the initial price:

Step-by-Step Calculation

1. Initial Price:
   

   $\text{Price} = ₹50,000$

2. After Year 1 (10% Increase):

   
   $\text{Price after Year 1} = 50,000 \times \left(1 + \frac{10}{100}\right) = 50,000 \times 1.10 = 55,000$

3. After Year 2 (5% Decrease):

4. $\text{Price after Year 2} = 55,000 \times \left(1 - \frac{5}{100}\right) = 55,000 \times 0.95 = 52,250$

5. After Year 3 (8% Increase):

   
   $\text{Price after Year 3} = 52,250 \times \left(1 + \frac{8}{100}\right) = 52,250 \times 1.08 = 56,430$