Question

The income of a company increases $20\%$ per annum. If its income is Rs. $26,24,000$ in the year $1999$ what was its income in the year $1997$?

• A. $74,005$
• B. $18,22,222.22$
• C. $18,500$
• D. $7,40,000$

Answer 1

The correct option is B $18,22,222.22$

$Letincomein1997be{}^{\prime }{P}^{\prime }$

$\therefore in1998=P(1+\frac{20}{100})$

$sinceeveryyearinconmeisincreasedby20\%$

$\therefore incomein1998=P(1+\frac{20}{100})$

$=P\left(\frac{120}{100}\right)$

$=\frac{6P}{5}$

$Incomein1999=Incomein1998+20\%ofincomein1998$

$=\frac{6P}{5}+\frac{20}{100}\ast \frac{6P}{5}$

$=\frac{6P}{5}(1+\frac{20}{100})$

$=36P$

$ATP,$

$\frac{36P}{25}=2624000$

$P=\frac{2624000\ast 25}{36}$

$=1822222.22$

$Henceincomein1997be1822222.22$