The price of an article increases by 20% every year. If the difference between its prices at the end of the third year and the end of the fourth year is Rs 230.40, then what is 40% of its price (in Rs) at the end of the second year?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 384
Each year the price becomes 1.2 times the price of the year before, so the rise in the fourth year is 20% of the price at the end of the third year.
20% of (price at the end of year 3) \(=230.40\)
Price at the end of year 3 \(\displaystyle =\frac{230.40\times100}{20}=1152\)
Price at the end of year 2 \(\displaystyle =\frac{1152}{1.2}=960\)
40% of 960 \(=384\)
The required value is Rs 384.