Question

For the fiscal year 2010-2011, the revenue generated by a company increased by 5%. Due to inflation in the next fiscal year, there was a dip in the revenue by 5%. The total revenue at the end of the second fiscal year is Rs.299250.
What was the revenue generated by the company at the beginning of the fiscal year 2010-2011?

• A. Rs.250000
• B. Rs.299250
• C. Rs.300000
• D. Rs.350000
• E. None of these

Answer 1

The correct option is C

Rs.300000

Revenue generated at the beginning of the initial fiscal year $=\frac{Rs.299250}{(1+\frac{5}{100})(1-\frac{5}{100})}=(Rs.299250\times \frac{20}{21}\times \frac{20}{19})=Rs.300000$