The production of AB Co. increased by 10% after one year, and in the next year it increased by 22%. In the third year, it increased by 5%. What overall change (in %) has been there in the production in three years from the original production?
Answer & explanation
Correct answer: option 2
Let production of company = 100
production after 1 year = 100 + 10% of 100
= 100 + \(\frac{10}{100}\) × 100 = 110
Production after 2nd year = 110 + 22% of 110
= 110 + \(\frac{22}{100}\) × 110 = 134.2
Production after 3rd year = 134.2 + 5% of 134.2
= 134.2 + \(\frac{5}{100}\) × 134.2 = 140.9
Change in production = 140.9 - 100 = 40.9
Change percentage = \(\frac{40.9}{100}\) × 100% = 40.9%