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    Question

    The value of a piece of land increases by 12% each year. If

    the present value is ₹1,50,000, find the value after 2 years.
    A ₹1,88,160 Correct Answer Incorrect Answer
    B ₹2,41,656 Correct Answer Incorrect Answer
    C ₹3,46,600 Correct Answer Incorrect Answer
    D ₹1,36,656 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 = 12% + 12% + [(12 × 12)/100]% = 24% +

    (144/100)% = 24% + 1.44% = 25.44%

    So, the value of the land after 2 years = 1.2544 × 150000 = ₹1,88,160

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