The cost of a property appreciates by 10% of the previous month every month. If in end march 2024 it was Rs. 13.31 lakh, when was it Rs. 10 lakh?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → end-december 2023
The value grows by 10% on the previous month, so it is multiplied by 1.1 every month (compound growth). If it was Rs. 10 lakh n months before end-March 2024:
\(10(1.1)^n = 13.31\)
\((1.1)^n = 1.331 = (1.1)^3\)
\(n = 3\)
Three months before end-March 2024 is end-December 2023 (end-February is 1 month before, end-January 2 months).