Question
The cost of a piece of equipment dropped by 14% in the
first year and 18% in the second year. If the value after 2 years is Rs. 30,160, calculate its original cost.Solution
ATQ,
Net percentage change = –14% –18% + {[(–14%) × (–18%)]/100}%= –32% + 2.52% = –29.48%
Let present cost be Rs. ‘x’
Then, 70.52% of x = 30160
Or, 0.7052 × x = 30160
Or, x = 30160 / 0.7052 = 42760
So, the original cost of the equipment = Rs. 42,760
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