Question

The number of seats for admission is increased by $10\%$ every year. If the number of seats in 2001 was 400, what were the number of seats in 2003?

• A. 824
• B. 484
• C. 500
• D. 480

Answer 1

The correct option is B 484

Initially in 2004, number of seats were 400.
The number of seats for admission is increased by 10 % every year i.e., seats are compunded every year by 10%.
Applying compounded interest formula to find the number of seats after 2 years, we get,
$A=P(1+R{)}^n$
Here,
P = initial number of seats = 400
R = rate of increase = 10%
n = time period = 2 years

So, $A=400(1+\frac{10}{100}{)}^2$
$A=400(\frac{11}{10}{)}^2$

So, after 2 years, the number of seats for admission will be $=400\times \frac{11}{10}\times \frac{11}{10}=4\times 11\times 11=484$