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Price of a house came down by 10% during recession. After one year, the price increased by 15%. What was the effective percentage change over the original price?1). 5%2). 8%3). 3.5%4). 4.5% |
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Answer» Let the original PRICE of the house be RS. X When price came down by 10% Price = (1 - 0.1) x = 0.9x When price is increased by 15% Price = (1 + 0.15) 0.9x = 1.15 × 0.9x = 1.035x Percentage CHANGE over original price = {(1.035x - x)/x} × 100 = 0.035 × 100 = 3.5% |
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