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.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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