The price of an article increases by 20% every year. If the difference between the prices at the end of third and fourth years is Rs. 259.20, then 40% of the price (in Rs.) at the end of second year is:
Show answer & explanation
Correct answer: B
Explanation
Correct Answer is option 2 i.e. Rs. 432
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Understanding |
Application |
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Let the price of an article be Rs. x. The price of an article at the end of 4 year = x × 1.2 × 1.2 × 1.2 × 1.2 The price of an article at the end of 3 year = x × 1.2 × 1.2 × 1.2
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Difference of the third and fourth years = 259.20 ⇒ (x × 1.2 × 1.2 × 1.2 × 1.2) - (x × 1.2 × 1.2 × 1.2) = 259.20 ⇒ x × 1.2 × 1.2 × 1.2 × (1.2 – 1) = 259.2 ⇒ x × 1.2 × 1.2 × 1.2 × 0.2 = 259.2 ⇒ x × 1.2 × 1.2 = 1080 40% of the price at the end of second year = x × 1.2 × 1.2 × 40/100 = 1080 × 40/100 = Rs. 432 |