Question

The price of a Bike was increased by 10%, 5% in first two years respectively. In the third year it is decreased by 15%. The price of bike is again increased by 10% in the fourth year. The difference between the price of a bike in fourth year and first year is Rs.2397.75. Find the approximate price of Bike in the first year.
1. Rs.30000
2. Rs.25000
3. Rs.34000
4. Rs.20000
5. Rs.40000

Answer 1

Correct Answer - Option 1 : Rs.30000

Calculation:

Let the price of bike in the first year be Rs.M.

The price of a bike after four years = M × (110/100 × 105/100 × 85/100 × 110/100) = 1.079925M

⇒ 1.079925M - M = 2397.25

⇒ M ≈ Rs.30000

∴ the price of a bike in the first year is Rs.30000.