Question

The income of a person is Rs. 6400, if his income increases by 10% each year then what will be his income after two years.
1. Rs. 7680
2. Rs. 7400
3. Rs. 7744
4. Rs. 7000

Answer 1

Correct Answer - Option 3 : Rs. 7744

Given:

Income of the person = Rs. 6400

Percentage increase every year = 10%

Time = 2 years

Formula used:

If there is increase in x% then then the value after the increment = Initial value × (100 + x)/100

Calculation:

Income after one year = Initial income × (100 + 10)/100

⇒ Income after one year = 6400 × 11/10 = 7040

Income after second year = 7040 × (100 + 10)/100 = 7744

∴ Income after two years will be Rs. 7744