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%

• 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
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