The production of company has ups and downs every year. The production increases for two consecutive years
consistently by 15% and in the third year it decreases by 10 % . Again in the next two years i increases by 15% each year and decreases by 10% in the third year . If we start counting from the year 1998. approximately what will be the effect on production of the company in 2002 ?
Let the production in 1998 be 100 units. Then
production in 2002 = 100 x `(1 + 15/100)^2 (1 - 10/100) (1 + 15/100)`
= `(100 xx 23/20 xx 23/20 xx 9/10 xx 23/20)` = 136.88
`:.` increase in pproduction = (136.88 - 100) = 36.88 = 37%
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