Question
A bike loses its value by 15% in the first year and 10% in
the second year. If the value of the bike after 2 years is Rs. 22,950, what was its price initially?Solution
ATQ,
Net percentage change = –15% –10% + {[(–15%) × (–10%)]/100}%= –25% + 1.5% = –23.5%
Let the present price be Rs. ‘x’
Then, 76.5% of x = 22950
Or, 0.765 × x = 22950
Or, x = 22950 / 0.765 = 30000
So, the original value of the bike = Rs. 30,000
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