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Application of Formula of CI

Lucy invested...

Question

Lucy invested $10, 000$ in a new mutual fund account exactly three years ago. The value of the account increased by $10$ percent during the first year,increased by $5$ percent during the second year, and decreased by $10$ percent during the third year. What is the value of the account today?

10350

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10395

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10500

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11500

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12705

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Solution

The correct option is B $10395$
The first year's increase of $10$ percent can be expressed as $1.10$ , the second year's increase can be expressed as $1.05$ and third year's decrease can be expressed as $0.90$ .
Multiply the original value accounts by each of these years changes,
$10, 000 (1.10) (1.05) (0.90) = 10, 395$
So, the value of the account today is Rs. $10, 395$ .

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Lucy invested 10,000 in a new mutual fund account exactly three years ago. The value of the account increased by 10 percent during the first year,increased by 5 percent during the second year, and decreased by 10 percent during the third year. What is the value of the account today?

Lucy invested $10, 000$ in a new mutual fund account exactly three years ago. The value of the account increased by $10$ percent during the first year,increased by $5$ percent during the second year, and decreased by $10$ percent during the third year. What is the value of the account today?