Question

The cost of a TV set was quoted Rs. 17000 at the beginning of 2000. In the price was hiked by $5\%$. Because of decrease in demand the cost was reduced by $4\%$ in the beginning of 2001. What was the cost of the T.V. set in 2001?

Answer 1

List price of TV set in 1999 = Rs. 17000

Rate of hike in 2000 $=5\%$

Rate of decrease in 2001 $=4\%$

$\therefore$ Price of TV set in 2001

$P=(1+\frac{R_1}{100})(1-\frac{R_2}{100})$

$=Rs.17000\times (1+\frac{5}{100})(1-\frac{4}{100})$

$=Rs.17000\times \frac{21}{20}\times \frac{24}{25}=Rs.17136$