Question

A T.V manufacturer reduces the price of a particular model by 5% every year. The current price of this model is Rs. 8000. What would be the price after 3 years?

Answer 1

The present price of the T.V = Rs. 8000

rate of reduction = 5% ,

Price after 2 years = 8000 (1 – \(\frac{5}{100}\))²

= 8000 × (\(\frac{95}{100}\))²

= 8000 × \(\frac{95}{100}\) × \(\frac{95}{100}\)

= Rs.7220