Question:
The cost of a T.V. set was quoted Rs 17000 at the beginning of 1999. In the beginning of 2000 the price was hiked by 5%. Because of decrease in demand the cost was reduced by 4% in the beginning of 2001. What was the cost of the T.V. set in 2001?
Solution:
Cost of the $\mathrm{TV}=\mathrm{P}\left(1+\frac{\mathrm{R}}{100}\right)\left(1-\frac{\mathrm{R}}{100}\right)$
$\Rightarrow 17,000\left(1+\frac{5}{100}\right)\left(1-\frac{4}{100}\right)$
$=17,000(1.05)(0.96)$
$=17,136$
Thus, the cost the TV in 2001 was Rs 17,136 .