The income of a company increases by 20%

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Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Compound Interest

Question:

The income of a company increases by 20% per year, if income is Rs. 25200 in year 2022, then its income in year 2020 was?

Options:

18500

17500

16500

15200

Correct Answer:

17500

Explanation:

A = P (1+ \(\frac{R}{100}\))^T

25200 = P (1+ \(\frac{R}{100}\))²

25200 = P (\(\frac{6}{5}\))²

\(\frac{25200 × 5 × 5}{6 × 6}\) = P

P = 17500