Question 7

# An electric appliance is priced at Rs. 600 initially. Because of market recession, price was successively reduced three times, each time by 10% of the price after the earlier reduction. What is the current price?

Solution

Initial price is given as 'I' = Rs. 600

After the first reduction, the initial price is reduced by 10%

$$\Rightarrow$$ the new price I' = $$600[1 - \frac{10}{100}] = 540$$

After second reduction, I' is reduced by 10%

$$\Rightarrow$$ the new price I'' = $$540[1 - \frac{10}{100}] = 486$$

After third reduction, I'' is reduced by 10%

$$\Rightarrow$$ the new price I''' = $$486[1 - \frac{10}{100}] = 437.4$$

Hence the Current price after three successive reductions is Rs. 437.4