Question

A shopkeeper sold ₹ 10 lakhs worth of medicines this year. If the sale decreases at a rate of 5% per year, find the value of medicines he might sell after 2 years?

• A. Rs 912,500
• B. Rs 905,500
• C. Rs 902,000
• D. Rs 902,500

Answer 1

The correct option is D Rs 902,500

P= Present worth = ₹ 10,00,000

R= -5 p.c.p.a

A = value after two years

$=P(1+\frac{r}{100}{)}^n$

$=10,00,000(1+\frac{-5}{100}{)}^2$

$=10,00,000(\frac{95}{100}{)}^2$

$=10,00,000\times \frac{95}{100}\times \frac{95}{100}$

$=9,02,500$

The worth after two years = ₹ 9,02,500