Question
A refrigerator depreciates in value by 18% in the first
year and then 12% in the next year. If its price after 2 years is Rs. 25,872, what was its initial price?Solution
ATQ,
Net percentage change = –18% –12% + {[(–18%) × (–12%)]/100}%= –30% + 2.16% = –27.84%
Let present value be Rs. ‘x’
Then, 72.16% of x = 25872
Or, 0.7216 × x = 25872
Or, x = 25872 / 0.7216 = 35850
So, the initial price of the refrigerator = Rs. 35,850
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