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:

432

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