The price of an article increase by 20% every year. If the difference between the price at the end of third and fourth year is Rs.259.20, then 40% of the price (in Rs.) at the end of second year is:
Answer & explanation
Correct answer: option 4
Let the price = x
at the end of 4th year = x × 1.2 × 1.2 × 1.2 × 1.2
at the end of 3rd year = x × 1.2 × 1.2 × 1.2
x × 1.2 × 1.2 × 1.2 × 1.2 - x × 1.2 × 1.2 × 1.2 = 259.20
x × 1.2 × 1.2 × 1.2 × .2 = 259.20
x × 1.2 × 1.2 = 1080
40 % of the price at the end of IInd year
x × 1.2 × 1.2 × 40 % = 1080 × \(\frac{40}{100}\)
= 432