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Question

# Due to a complete drop in demand the price of the petrol (per litre) was decreasing at a rate of 5% per annum for two years. Later due to a sudden increase in demand the price of the petrol (per litre) increased at 5% per annum for two years and reached a price of Rs. x . If the initial cost of petrol (per litre) was Rs. y, then

A

x> y

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B

x< y

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C

x = y

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D

can’t say

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E

x ≥ y (Depends on x)

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Solution

## The correct option is A x> y Let the initial price of petrol (per litre) be Rs.x Cost after two years = (95100)2x Cost after another two years = (95100)2(105100)2x = 0.99500 x x > y

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