Question

Radhika bought a car for Rs 2,50,000. Next year its price decreased by 10% and further next year it decreased by 12%. In the two years overall decrease per cent in the price of the car is

(a) 3.2% (b) 22% (c) 20.8% (d) 8%

Answer 1

(c) 20.8%

Explanation: 

Radhika bought a car for Rs. 250000.

Cost price = Rs.250000

Its price decreased next year for 10%.

Thus, new price = 250000 – (10/100) × 250000

= 250000 – 25000 = 225000

Again, the price of car decreased by 12% next year. So the price will be:

= 225000 – 225000 × (12/100)

= 225000 – 27000

= 198000

So, the overall decrease in percentage of car price = (250000-198000)/250000 × 100

= (52000/250000) × 100 = 520/25 = 20.8%