Question:
The production of a mixi company in 1996 was 8000 mixies. Due to increase in demand it increases its production by 15% in the next two years and after two years its demand decreases by 5%. What will be its production after 3 years?
Solution:
Production after three years $=\mathrm{P}\left(1+\frac{\mathrm{R}_{1}}{100}\right)^{2}\left(1-\frac{\mathrm{R}_{2}}{100}\right)$
$=8,000\left(1+\frac{15}{1,000}\right)^{2}\left(1-\frac{5}{100}\right)$
$=8,000(1.15)^{2}(0.95)$
$=10,051$
Thus, the production after three years will be 10,051 .