Question
The income of ‘A’ increases by 20% every year. If his income 3 years hence from now will be Rs. 51840, then find his income a year before from now.
Solution
Let the present income of ‘A’ be Rs. x Therefore, x(1 + 20/100)3 = 51840 Or, x = 51840/(1.2)2 = 30000 Therefore, his income a year before from now = 30000/1.2 = Rs. 25000
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