Correct Answer - Option 3 : Rs. 26,016.26
Given:
Savings of Priyam rises by 25% in first year, reduced by 18% in second year, fall by 25% in third year while his savings rises by 50% in fourth year.
Actual savings of Priyam in fourth year were equal to Rs. 30,000.
Concepts used:
New savings in 4th year = Current savings × (1 + % rise in 1st year) × (1 - % fall in 2nd year) × (1 - % fall in 3rd year) × (1 + % rise in 4th year)
Calculation:
Let savings of Priyam in 1st year be x.
Savings of Priyam in fourth year = Rs. 30,000
Savings of Priyam rises by 25% in first year, reduced by 18% in second year, fall by 25% in third year while his savings rises by 50% in fourth year.
⇒ New savings in 4th year = Current savings × (1 + % rise in 1st year) × (1 - % fall in 2nd year) × (1 - % fall in 3rd year) × (1 + % rise in 4th year)
⇒ Rs. 30,000 = x × (1 + 0.25) × (1 – 0.18) × (1 - 0.25) × (1 + 0.50)
⇒ x = Rs. 26,016.26
∴ Savings of Priyam in first eyar were equal to Rs. 26,016.26.