Question

Radhika bought a car for $₹2,50,000$ Next year its price decreased by $10\%$ and further next year it decreased by $12\%$. In the two years, overall decrease percent in the price of the car is

• A. $3.2\%$
• B. $22\%$
• C. $20.8\%$
• D. $8\%$

Answer 1

The correct option is C

$20.8\%$

Given that

Radhika bought a car for $₹2,50,000$

$\Rightarrow$ Cost price (C.P) $=₹2,50,000$

Its price decreased next year by $10\%$.

$\Rightarrow$ New price $=250000–\frac{10}{100}\times 250000=250000-25000=₹225000$

Again, the price of the car decreased by $12\%$ next year.

So the price will be:

$=225000–\frac{12}{100}\times 225000=225000–27000=₹198000$

Now

Initial Price $=₹250000$

Final Price $=₹198000$

An overall decrease in price $=250000-198000=₹52000$

$\mathrm{Percentage}\mathrm{decrease}=\frac{\mathrm{decrease}\mathrm{in}\mathrm{price}}{\mathrm{Initial}\mathrm{prices}}\times 100$

$=\frac{52000}{250000}\times 100=20.8\%$

Hence the overall percentage decrease in car price is $20.8\%$ and the correct option is C