The income of a company increases by 25% per year, if income is Rs.35200 in year 1998, then its income in year 1996 was?
Answer & explanation
Correct answer: option 2
A = P(1 + \(\frac{R}{100}\))T
35200 = P (1+ \(\frac{R}{100}\))2
35200 = P (1+ \(\frac{20}{100}\))2
35200 = P ( 1+ \(\frac{1}{4}\))
35200= P (\(\frac{5}{4}\))
\(\frac{35200×4×4}{5×5}\)= P
P = 22528