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    Question

    The cost of a motorbike increases by 8% annually. If its

    current cost is ₹40,000, what will be its cost after 2 years?
    A ₹46,656 Correct Answer Incorrect Answer
    B ₹41,656 Correct Answer Incorrect Answer
    C ₹46,600 Correct Answer Incorrect Answer
    D ₹36,656 Correct Answer Incorrect Answer

    Solution

    ATQ,

    If there is successive increase of ‘a%’ and ‘b%’ on a certain quantity/value, then the net percentage increase = a% + b% + [(a × b)/100]%

    So, the net percentage increase = 8% + 8% + [(8 × 8)/100]%

    = 16% + (64/100)% = 16% + 0.64% = 16.64%

    So, the cost of the motorbike after 2 years = 1.1664 × 40000 = ₹46,656

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