The price of a pencil is increased by ₹2 this year and ₹2 in the previous year. The price of a pencil is now 30% more than the price in the previous to the previous year. How much is the price of the pencil now in ₹?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e 17.33.
Let the price of the pencil 3 years ago be x.
Last year: price = x + 2
This year: price = (x + 2) + 2 = x + 4
Current price is 30% more than x
So:
⇒ x + 4 = x + 30% of x = x + 0.3x = 1.3x
⇒ x + 4 = 1.3x
⇒ 4 = 0.3x
⇒ x = 4 / 0.3 = 13.33
Now price = x + 4 = 13.33 + 4 = ₹17.33