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Question
The cost of a T.V. set was quoted Rs 17000 at the beginning of 1999. In the beginning of 2000 the price was hiked by 5%. Because of decrease in demand the cost was reduced by 4% in the beginning of 2001. What was the cost of the T.V. set in 2001?
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Solution
Cost of the TV = P \[\left( 1 + \frac{R}{100} \right)\left( 1 - \frac{R}{100} \right)\]
\[ \Rightarrow 17, 000\left( 1 + \frac{5}{100} \right)\left( 1 - \frac{4}{100} \right)\]
\[ = 17, 000\left( 1 . 05 \right)\left( 0 . 96 \right)\]
\[ = 17, 136\]
Thus, the cost the TV in 2001 was Rs 17, 136.
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