Question

The value of an article decreases for two years at the rate of 10% per year and then in the third year it increases by 10%. Find the original value of the article, if its value at the end of 3 years is Rs. 40,095.

Answer 1

Let X be the value of the article.

The value of an article decreases for two years at the rate of 10% per year.

The value of the article at the end of the 1^st year is

X - 10% of X = 0.90X

The value of the article at the end of the 2^nd year is

0.90X - 10% of (0.90X) = 0.81X

The value of the article increases in the 3^rd year by 10%.

The value of the article at the end of 3^rd year is

0.81x + 10% of (0.81x) = 0.891x

The value of the article at the end of 3 years is Rs. 40,095.

0.891X = 40,095

⇒ X = 45,000

The original value of the article is Rs. 45,000.