Question
The revenue of a company grows by 15% each year. If the
current revenue is ₹2,00,000, what will be the revenue 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 = 15% + 15% + [(15 × 15)/100]%
= 30% + (225/100)% = 30% + 2.25% = 32.25%
So, the revenue after 2 years = 1.3225 × 200000 = ₹2,64,500
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