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Question
The production of a mixi company in 1996 was 8000 mixies. Due to increase in demand it increases its production by 15% in the next two years and after two years its demand decreases by 5%. What will be its production after 3 years?
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Solution
Production after three years = P \[\left( 1 + \frac{R_1}{100} \right)^2 \left( 1 - \frac{R_2}{100} \right)\]
\[ = 8, 000 \left( 1 + \frac{15}{1, 000} \right)^2 \left( 1 - \frac{5}{100} \right)\]
\[ = 8, 000 \left( 1 . 15 \right)^2 \left( 0 . 95 \right)\]
\[ = 10, 051\]
Thus, the production after three years will be 10, 051.
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