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The price of a commodity increased by 20% in the first year, decreased by 30% in the second year and increased by 40% in the third year. Find the average increase for these three years. [Ans. 5.56%?
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The price of a commodity increased by 20% in the first year, decreased...
Solution:

Let the initial price of the commodity be Rs. 100.

After the first year, the price increased by 20%. Therefore, the new price is:

100 + (20/100) x 100 = Rs. 120

After the second year, the price decreased by 30%. Therefore, the new price is:

120 - (30/100) x 120 = Rs. 84

After the third year, the price increased by 40%. Therefore, the new price is:

84 + (40/100) x 84 = Rs. 117.6

Hence, the overall increase in price over the three years is:

117.6 - 100 = Rs. 17.6

Therefore, the average increase in price over the three years is:

(17.6/100) x 100 = 5.56%

Hence, the average increase in price over the three years is 5.56%.
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The price of a commodity increased by 20% in the first year, decreased by 30% in the second year and increased by 40% in the third year. Find the average increase for these three years. [Ans. 5.56%?
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