Multiple choice

The price of an article increases by 10% and decreases by 10% in alternate years. By how much percent the price of the article at the end of fourth year was less than or more than that at the end of second year?

  1. 10% more

  2. 10% less

  3. 1% less

  4. 1% more

  5. None
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let initial price be 100. End of year 1: 110. End of year 2: 110 * 0.9 = 99. End of year 3: 99 * 1.1 = 108.9. End of year 4: 108.9 * 0.9 = 98.01. Price at end of year 4 is 98.01, price at end of year 2 is 99. Decrease = 99 - 98.01 = 0.99, which is 1 percent of 99.

AI explanation

Let the starting price be 100; after the first year it increases by 10 percent to 110, and after the second year it decreases by 10 percent to 110 minus 11, which equals 99. Following the same alternate pattern for the next two years, the price goes up to 108.9 and then down by 10 percent to 98.01. Comparing 98.01 to the price at the end of the second year of 99, the decrease is 0.99, which equals 1 percent.

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