The price of an AC increases and decreases in every alternate year by %. It started with an increase in 2004. The price of the AC in 2007, as compared to that in 2004 (correct to two places of decimals):
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. increased by 1.57%.
Net effect for first and second year = +1.6 - 1.6 - (1.6 × 1.6)/100 = -0.0256
Net effect for second and third year = -0.0256 + 1.6 - (0.0256 × 1.6)/100
1.5744 - 0.00040 = 1.57% (approx)