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?

Explanation

The cost of a T.V. set at the beginning of 1999 is (P)`=17000`
Hiked in price in the year 2000 is(R)` =5%`
Depreciation rate in the year 2001 is(r)` =4%`
Cost of tv `=P(1+R/100)(1-r/100)`
`=17000(1+5/100)(1-4/100)`
`=17000(1+1/20)(1-1/25)`
`=17000(21/20)(24/25)`
`=(17000xx21xx24)/(20xx25)`
`=17136`.
Hence the cost of tv in 2001 was 17136 rupees.