Question

The production of toys in a factory was 40,000 two years ago. The production decreased by 3% in the first year but increased by 5% in the second year. Find the present day production.

Answer 1

Given, the production of toys in a factory was 40,000 two years ago. The production decreased by 3% in the first year but increased by 5% in the second year.

Present day production = Number of toys two years ago `(1 - r_1/100)(1 + r_2/100)`, where r₁ is the decrease in production in the first year and r₂ is the increase in production in the second year.

Present day production = `40000(1 - 3/100)(1 + 5/100)`

= `40000 xx 97/100 xx 105/100`

= 40740

Hence, the present day production is 40740.