Latest CAT Aptitude Question SOLUTION: The Congress government promised in 1991 that they would bring down prices in 100 days. They failed to do so and the prices went up by 10% each year for the next five years i.e., f

• Placement Papers
• /
• CAT

CAT Question Papers:

(#M40029293) CAT question CAT quant Keep an EYE

The Congress government promised in 1991 that they would bring down prices in 100 days. They failed to do so and the prices went up by 10% each year for the next five years i.e., from 1992 to 1996. Then BJP got elected and successfully brought down the prices by 10% each year from 1997 onward. Find approximately by what percentage will prices in 1999 be more than those in 1992?

Option
(1) 18%
(2) 5%
(3) 8%
(4) 7%

Asked In CAT (10 years ago)

Unsolved Read Solution (1)

Is this Puzzle helpful?   (0)   (0) Submit Your Solution

Read Solution (1) :

P.Someshwar Reddy  (10 years ago)

Option 1: 18%

suppose prices in 1991 is Rs.100
Given from 1992-96, prices increased by 10% for every year
therefore prices in 1996 is
100*(110/100)^5
=>161.051 (price in 1992)
Given from 1997 prices got down by 10% for every year
therefor prices in the year 1999 is
161.051*(90/100)^3
=>117.406179 (price in 1999)

percentage change from 1992 to 1999 is

((117.406179-100)/100)*100
=>(17.406179/100)*100
=>17.407179% approximately equal to 18%

so the option is 1

Is this solution Helpfull? Yes | No   

Please Login to Read Solution.